A bank developed a model for predicting the average checking and savings account balance as balance = -17,732 + 367 * age +1300

Question

Maru [420]

2 years ago

6

A bank developed a model for predicting the average checking and savings account balance as balance = -17,732 + 367 * age +1300

*years education + 0.116 * household wealth.
a. Explain how to interpret the numbers in this model.

Business

1 answer:

Ann [662] · Answer 1 · 2022-07-27T17:35:18+03:00

We are given with the equation
<span>balance = -17,732 + 367 * age +1300 *years education + 0.116 * household wealth

</span>-17,732 is a constant amount credited from the savings acount
367 is the amount saved per year of age
1300 is the amount saved per year of education
0.116 is the amount save per household wealth