1. A large national bank charges local companies for using their services. A bank official reported the results of a regression to predict the bank charges (Y) -- measured in dollars per month-- for services rendered to local companies. One independent variable used to predict service charges is the company's sales revenue (X) -- measured in millions of dollars. Data for 21 companies who use the bank's services were used to fit the simple linear regression model and the results are provided below:

Y-hat = -2,700 + 20X

Interpret the estimate of 0, the y-intercept

A. All companies will be charged at least 2,700

B. There is no practical interpretation since a sales revenue of $0 is a nonsensical value

C. About 95% of the observed service charges fall within 2,700 of the least squares line

D. For every $1 million in sales revenue, we expect a service charge to decrease by 2700