How should the loan officer interpret the coefficient on x3?
A) For every additional 8,000 spent on advertising, we would expect the total dollar value of residential loans to increase by 1,000,000 on average, assuming that all the other independent variables in the model are held constant.
B) For every additional dollar spent on advertising, we would expect the total dollar value of residential loans to increase by 0.08 million, assuming that all the other independent variables in the model are held constant.
C) For every additional 80,000 spent on advertising, we would expect the total dollar value of residential loans to increase by 1,000,000, assuming that all the other independent variables in the model are held constant.
D) For every additional 1000 spent on advertising, we would expect the total dollar value of residential loans to increase by 80,000 on average, assuming that all the other independent variables in the model are held constant.
Question 2
Which of the following is not true for an exponential distribution with parameter ?
A) Mean = 1/
B) Standard deviation = 1/
C) The distribution is completely determined once the value of is known.
D) The distribution is symmetric around the mean.
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Use a graphical method to find the length of the loan to the nearest year
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