Question

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 our of 200 charges.

Answer 1

To estimate how many credit card charges are fraudulent out of 200 charges using the model y = 1 + 0.02x, we substitute x = 200 into the equation:

y = 1 + 0.02(200)
y = 1 + 4
y = 5

Therefore, the model estimates that out of 200 credit card charges, approximately 5 charges would be fraudulent.