When Should Credit Standards Be Relaxed

question 211

Multiple Choice

When should credit standards be relaxed?

• A) when costs are expected to increase faster than sales if the standards are not relaxed
• B) when costs are expected to decrease
• C) when the profit contribution from sales is greater than the cost contribution
• D) when sales are expected to increase

---

Definitions:

Sampling Distribution

The probability distribution of a statistic (for example, a mean, variance) obtained from a large number of samples drawn from a specific population.

Confidence Interval

A span of numbers obtained from sample data which is expected to encompass the value of a not yet known population characteristic, specified with a defined degree of certainty.

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or calculation, affecting the shape of the distribution.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, with a specified level of confidence.