Question: A credit union developed a model for predicting the average checking and savings account balance as Balance = -10,500 + 300 X age + 1100

A credit union developed a model for predicting the average checking and savings account balance as Balance = -10,500 + 300 X age + 1100 X years of education + 0.155 X yearly earnings

(a) Explain how to interpret the numbers in this model.

(b) Suppose that a customer is 55 years old, is a college graduate (so that years of education = 16), and has a yearly earnings of $120,000. What is the predicted bank balance?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

A bank developed a model for predicting the average checking and savings account balance as balance -18,927 +313 x age +1,286 x years education + 0.145 x household wealth. a. Explain how to interpret...

A bank developed a model for predicting the average checking and savings account balance as balance = - 15,999 + 308 x age +1,203 x years education +0.144 x household wealth. a. Explain how to...

developed a model for predicting the average checking and savings account balance as balance = -19,681 +326x age +1,347 x years education +0.117x household wealth. a. Explain how to interpret the...

A bank developed a model for predicting the average checking and savings account balance as balance =17,119+ 334 x age +1,326 x years education +0.126x household wealth. a. Explain how to interpret...

*PLEASE respond as soon as possible thank you!* A bank developed a model for predicting the average checking and savings account balance as balanceequals=negative 19 comma...

A bank developed a model for predicting the average checking and savings account balance as balance = -17,819 +374 age + 1,460 years education + 0.144 household wealth. a. Explain how to interpret...

A bank developed a model for predicting the average checking and savings account balance as balance-16,908 380xage + 1,421 x years education 0.145 x household wealth. a. Explain how to interpret the...

Total = 1 0 0 Points Problem 1 . [ Ref: Lecture 1 . 6 ] Suppose that a manufacturer can produce a part for $ 2 0 . 0 0 with a fixed cost of $ 3 , 0 0 0 . The manufacturer can contract with a supplier...

P.S: This is for Business Analytics 1. Return on investment (ROI) is computed in the following manner: ROI is equal to turnover multiplied by earnings as a percent of sales. Turnover is sales divided...

A bank developed a model for predicting the average checking and savings account balance as balance = -17,732 + 367 * age + 1,300 * years education + 0.116 * household wealth. Explain how to...

Water is sold in bottles that are advertised to contain 1-liter each. Barbara is an inspector for the company and notices that the amount of water in each bottle, unfortunately, has an average of...

Table 1: Number of monthly active Twitter users in the USA (Source:Statista.com) Year Monthly Active Users in the USA (millions) 2010 10 2011 19 2012 34 2013 48 2014 57 2015 65 2016 65 2017 69 2018...

Lequel de ces lments a ncessairement un effet dilutif? a) Les options d'achat d'actions lorsque le cours moyen de march pendant la priode est suprieur au prix d'exercice des options b) Les options...

atch the compensation objectives with their meanings. Efficiency Efficiency drop zone empty. Fairness Fairness drop zone empty. Compliance Compliance drop zone empty. Improving performance and...