The Following Three FIs Dominate a Local Market and Their

question 157

Multiple Choice

The following three FIs dominate a local market and their total assets are given below. $$\begin{array} { | c | r | } \hline \text { Institution } & \text { Asset Size } \\\hline \text { Bank A } & \text { \$50 million } \\\hline \text { Bank B } & \text { \$60 million } \\\hline \text { Bank C } & \text { \$90 million } \\\hline\end{array}$$ What is the Herfindahl-Hirschman Index (HHI) for the local market?

• A)1,000.
• B)3,450.
• C)3,550.
• D)3,400.
• E)60.

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Definitions:

Confidence Interval

An interval of values, derived from statistics gathered from a sample, expected to cover the value of a hidden parameter in a population.

Standard Error

A statistic that measures the accuracy with which a sample distribution represents a population using the standard deviation of the sampling distribution.

Confidence Interval

A selection of values, based on sample results, assumed to incorporate the value of an obscure population parameter.

Mean

The average value of a data set, calculated by adding up all the numbers in the set and then dividing by the count of the numbers.