SCENARIO 12-4
the Managers of a Brokerage Firm Are Interested

question 199

Short Answer

SCENARIO 12-4
The managers of a brokerage firm are interested in finding out if the number of new clients a broker brings into the firm affects the sales generated by the broker.They sample 12 brokers and determine the number of new clients they have enrolled in the last year and their sales amounts in thousands of dollars.These data are presented in the table that follows. $\begin{array}{lll}\text { Broker } & \text {Clients} & \text {Sales }\\1 & 27 & 52 \\2 & 11 & 37 \\3 & 42 & 64 \\4 & 33 & 55 \\5 & 15 & 29 \\6 & 15 & 34 \\7 & 25 & 58 \\8 & 36 & 59 \\9 & 28 & 44 \\10 & 30 & 48 \\11 & 17 & 31 \\12 & 22 & 38\end{array}$
-Referring to Scenario 12-4, suppose the managers of the brokerage firm want to construct both a99% confidence interval estimate and a 99% prediction interval for X = 24.The confidence interval estimate would be the (wider or narrower) of the two intervals.

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Definitions:

Interpersonal Skills

Interpersonal skills are the abilities required to effectively communicate, interact, and work with individuals and groups.

Alcohol Consumption

The act of drinking beverages containing ethanol, which can have varying social, cultural, and health impacts depending on the quantity and frequency of consumption.

Cognitive Dissonance

The mental discomfort or stress experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Social Learning

A theory that proposes learning occurs within a social context and that people learn from one another through observation, imitation, and modeling.