A Bank Records the Number of Mortgage Applications and Its

question 55

Multiple Choice

A bank records the number of mortgage applications and its own prevailing interest rate (at the first of the month) for each of 16 consecutive months. Is there a correlation between the interest rate (x) and the number of applicants (y) , and if so, is it significant at the 5% or the 1% significance level? ​ ​ ​

• A) -0.652, significant at 5%
• B) -0.652, no significant correlation
• C) -0.733, significant at 1%
• D) -0.587, significant at 5%
• E) -0.587, significant at 1%

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Definitions:

Written Agreement

A formal contract documented in writing between two or more parties outlining the terms and conditions of an agreement.

Purchasing

The process of acquiring goods, services, or works from an external source, often via a contract.

Investing Assets

Assets acquired for the purpose of generating income from investments rather than for use in the company's main business operations.

Bonus

An additional payment given to employees as a reward for their performance, over and above their regular salary.