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 point)

Answer 1

In the given statistical model \( y = 1 + 0.02x \), \( y \) represents the estimated number of fraudulent charges, and \( x \) represents the total number of credit card charges.

To estimate the number of fraudulent charges out of 200 charges, we can substitute \( x = 200 \) into the model:

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

Calculating this:

\[ y = 1 + 0.02 \times 200 \] \[ y = 1 + 4 \] \[ y = 5 \]

Therefore, the model estimates that out of 200 charges, approximately 5 charges are fraudulent.