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

question 125

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, the managers of the brokerage firm wanted to test the hypothesis that the number of new clients brought in had a positive impact on the amount of sales generated.At a level of significance of 0.01, the decision that should be made implies that the number of newclients brought ingenerated.(had or did not have) a positive impact on the amount of sales

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Definitions:

Generous Scoops

The act of providing or serving portions of food, especially ice cream, that are more substantial than what is standard or expected.

Low Premium

Pertains to the relatively small amount paid for insurance coverage or other financial products, compared to higher-coverage options.

High Deductible

A health insurance plan feature requiring the policyholder to pay a significant amount of money before the insurance coverage begins.

High Premium

A term used in insurance to describe the higher cost paid by the insured for a policy with greater coverage or higher risk protection.