A researcher builds a statistical model to determine how many credit card charges are fraudulent. Use the model y=1+0.02x

to estimate how many credit card charges are fraudulent out of 200 charges.

1 answer

To use the statistical model \( y = 1 + 0.02x \) to estimate the number of fraudulent credit card charges, we need to substitute \( x \) with the total number of charges, which is 200 in this case.

Substituting \( x = 200 \) into the equation provides:

\[ y = 1 + 0.02(200) \]

Calculating the multiplication first:

\[ 0.02 \times 200 = 4 \]

Now, add 1:

\[ y = 1 + 4 = 5 \]

Therefore, using the model, the estimate for the number of fraudulent credit card charges out of 200 charges is 5.