A large national bank charges local companies for using their services. A bank official reported the results of a regression analysis designed to predict the bank's charges (y), measured in dollars per month, for services rendered to local companies. One independent variable used to predict service charge to a company is the company's sales revenue (x), measured in $ million. Data for 21 companies who use the bank's services were used to fit the model
E(y) = ?0 + ?1x.
Suppose a 95% confidence interval for ?1 is (15, 25). Interpret the interval.
Question 1 options:
A. We are 95% confident that service charge (y) will decrease between $15 and $25 for every $1 million increase in sales revenue (x).
B. We are 95% confident that the mean service charge will fall between $15 and $25 per month.
C. We are 95% confident that sales revenue (x) will increase between $15 and $25 million for every $1 increase in service charge (y).
D. We are 95% confident that service charge (y) will increase between $15 and $25 for every $1 million increase in sales revenue (x).