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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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Winter Company earned revenues of​ $150,000 in cash and​ $200,000 on account during 2018. Of the​ $200,000 on​ account, $63,000
ICE Princess25 [194]

Answer:

$235,000

Explanation:

Under the accrual accounting system, expenses are recognized in the period incurred and not necessarily in the period cash is paid.

Revenue is also recognized in the period earned and not necessarily when cash is collected.

Total revenue in 2018 = $200,000 + $150,000

= $350,000

Net income is the difference between the revenue and expense

Net income in 2018 = $350,000 - $115,000

= $235,000

8 0
3 years ago
A short forward contract that was negotiated some time ago will expire in 4-month and has a delivery price of $42.25. The curren
padilas [110]

Answer:

the  value of the short forward contract is -0.49

Explanation:

the computation of the value of the short forward contract is shown below:

= (Delivery price - current forward price)× e^(risk free interest rate × no of months ÷ total number of months)

= ($42.25 - $42.75)× e^(-7.90% × 4÷12)

= -0.49

Hence, the  value of the short forward contract is -0.49

Therefore the same should be considered  

8 0
3 years ago
One of the examples given by Agnew and Brezina as a way to reduce crime by reducing situational strains is to:
Len [333]

Answer:

Reduce the amount of media violence.

Explanation:

Reducing crime reducing situational stains is the method to minimize the impact of crime and being it public. Media is the most effective way which reports details of crime very quickly. Agnew and  Brezina had tried to reduce the impact of crime and avoid distribution of details to public about the reported crime to reduce situational stains.

7 0
2 years ago
Income rises from $3,500 to $4,000 a month and the quantity demanded of good X falls from 7 to 5 units a month. Income elasticit
finlep [7]

Answer:

E) -2.50 ; inferior

Explanation:

Before you earned $3,500 per month, you consumed 7 units per month. That means that you consumed 1 unit every $500 earned.

When your income increased to $4,000, you only consumed 5 units per month. That means that your consumption decreased to 1 unit for every $800.

The income elasticity of demand using the midpoint method is calculated by using the following formula:

income elasticity = {change in quantity demanded / [(old quantity + new quantity) / 2]} /  {change in income / [(old income + new income) / 2]}  

= {-2 / [(7 + 5) / 2]} /  {500 / [(3,500 + 4,000) / 2]} = (-2 / 6) / (500 / 3,750) = -0.333 / 0.133 = -2.5

Since the income elasticity of demand is negative, the good X is an inferior good.

7 0
3 years ago
Compute and select the correct common-size percent for each account title.Total Assets is $700,000 Accounts Payable is $75,000 B
Arisa [49]

Answer and Explanation:

The computation for each corrected common-size percent for each account is shown below:

Particulars             Amount                  Percentage

Total assets           $700,000                    100%

Accounts payable $75,000                      10.71%

                                                       ($75,000 ÷ $700,000)

Bonds payable      $225,000             32.14%

                                                       ($225,000 ÷ $700,000)

Common stock      $300,000            42.86%

                                                         ($300,000 ÷ $700,000)

Retained earnings $100,000             14.29%

                                                  ($100,000 ÷  $700,000)

Therefore each one of assetm liabilities and stockholder equity is presented as a percentage of total assets and the same is to be considered

3 0
3 years ago
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