A bank developed a model for predicting the average checking and savings account balance as balance = -17,732 +36 age +1,300 * years education + 0.116* household wealth. a.Explain how to interpret the numbers in this model. b.Suppose that a customer is 32 years old, is a college graduate (so that years education = 16), and has a household wealth of $150,000. What is the predicted bank balance?

A bank developed a model for predicting the average checking and savings account balance as balance = -17,732 +36 age +1,300 * years education + 0.116* household wealth. a.Explain how to interpret the numbers in this model. b.Suppose that a customer is 32 years old, is a college graduate (so that years education = 16), and has a household wealth of $150,000. What is the predicted bank balance?

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter5: Managing Checking And Savings Accounts

Section: Chapter Questions

Problem 1FPC

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