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enyata [817]
3 years ago
13

A large national bank charges local companies for using their services. A bank official reported the results of a regression ana

lysis designed to predict the bank's charges (Y)measured in dollars per monthfor services rendered to local companies. One independent variable used to predict service charges to a company is the company's sales revenue (X)measured in millions of dollars. Data for 21 companies who use the bank's services were used to fit the model: The results of the simple linear regression are provided below. Referring to the equation above, interpret the estimate of 0, the Y-intercept of the line. For every $1 million increase in sales revenue, we expect a service charge to decrease $2,700. There is no practical interpretation since a sales revenue of $0 is a nonsensical value. About 95% of the observed service charges fall within $2,700 of the least squares line. All companies will be charged at least $2,700 by the bank.
Business
1 answer:
Snowcat [4.5K]3 years ago
5 0

Answer:

The correct option is (b).

Explanation:

The regression equation to predict the bank's charges (Y) measured in dollars per month for services rendered to local companies based upon the company's sales revenue (X) measured in millions of dollars is:

\hat Y=-3100+27X

The <em>y</em>-intercept of the line is, -3100.

The slope of the line is, 27.

The <em>y-</em>intercept of a regression line is defined as the average value of the dependent variable when the independent variable value is 0.

The dependent variable, in this case, is the bank's charges and the independent variable is the company's sales revenue.

As the company's sales revenue cannot be $0, the <em>y</em>-intercept cannot be interpreted.

Thus, the correct option is (b).

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If aggregate planned expenditures in the economy increase by $100 million, then real GDP will _____ $100 million.
nirvana33 [79]

Answer:

Real GDP will rise by $100 million

Explanation:

Aggregate Demand [AD] is total amount of goods & services, all sectors of an economy are planning to buy . So AD = Aggregate Planned Expenditure [APE]

Aggregate Supply [AS] is total amount of goods & services, all sellers are planning to sell. As total output value of goods & services produced is distributed among factors of production, AS = National Income [NY] = GDP

At equilibrium : AD or APE =  AS or NY or GDP

If AD or APE increases by $100 million :

AD or APE  > AS or Aggregate Planned Production or GDP . This implies willingess to buy > willingness to produce. So, inventory levels will fall below desired level. To mantain inventory level, production [AS] & income level [GDP] will rise till it becomes equal to risen AD or APE

So, GDP will also rise by $100 million

6 0
3 years ago
1. _______ is the process of setting up business units to do specialized tasks such as marketing and accounting. Organizational
Bogdan [553]

Answer:

Departmentalization

Explanation:

The departmentalization refer to the framework of the organization that involves various types of departments like finance, accounting, human resource, marketing, sales and services, etc

It is important to setting up each department so that the day to day task could be accomplished with the specified time and the company could achieve its organizational objectives

Therefore, as per the given situation, the most appropriate answer is departmentalization

5 0
3 years ago
"when buying or selling a futures contract, the trader commits what amount of funds"
Nadusha1986 [10]
When buying or selling a futures contract, the trader commits what amount of funds the amount of the initial margin. A futures contract is a legal agreement to buy or sell assets, mainly commodities, at a set price but it will be delivered and paid for later. Based on the definition of a futures contract, the trader will have to commit to the initial amount that was set to be traded when the legal agreement was made. 
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3 years ago
Assume University Athletic Pharoah Club sells T-shirts for $30 and anticipates selling 6,700 shirts during football season. The
den301095 [7]

The preparation of the University Athletic Pharaoh Club's Income Statement in the contribution margin format is as follows:

University Athletic Pharaoh Club

<h3>Income Statement</h3>

For the football season

Sales Revenue                $201,000

Variable cost of sales        155,574

Contribution margin       $45,426

Fixed Costs:

Selling and administrative 33,526

Net Income                       $11,900

<h3>Data and Calculations:</h3>

Sales revenue = $201,000 ($30 x 6,700)

Cost of sales = $155,574 ($23.22 x 6,700)

Fixed Costs = $35,000

Sales commission = $1,474 ($0.22 x 6,700)

Remaining fixed costs = $33,526

Thus, the income statement of University Athletic Pharaoh Club for the football season shows a net income of $11,900.

Learn more about Contribution-Margin Income Statement at brainly.com/question/24962994

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ycow [4]

Answer:

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