A researcher builds a statistical model to determine how many credit card charges are fraudulent. Use the model

Question

y
=
1
+
0.02
x
y=1+0.02x to estimate how many credit card charges are fraudulent out of 200 charges.

fraudulent charges

Answer 1

To estimate the number of fraudulent credit card charges using the model \( y = 1 + 0.02x \), where \( y \) represents the estimated number of fraudulent charges and \( x \) represents the total number of charges, we can substitute \( x = 200 \) (the total number of charges) into the model.

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

Calculating it step by step:

1. Calculate \( 0.02 \times 200 \): \[ 0.02 \times 200 = 4 \]

2. Now, add that result to 1: \[ y = 1 + 4 = 5 \]

Thus, the estimated number of fraudulent credit card charges out of 200 charges is 5.