Chapter 1, Problem 7PE

A bank developed a model for predicting the average checking and savings account balance as balance $\text{balance = }-\text{17,732 + 367 × age + 1,300 × years education + 0}\text{.116 × household wealth}\text{.}$

1. Explain how to interpret the numbers in this model.
2. Suppose that a customer is $\text{32 years}$ old, is a college graduate $\left(\text{so that years education = 16}\right)\text{,}$ and has a household wealth of $\$150,000.$ What is the predicted bank balance?