SCENARIO 12-1
a Large National Bank Charges Local Companies for Using

question 192

Multiple Choice

SCENARIO 12-1
A large national bank charges local companies for using their services.A bank official reported the results of a regression analysis designed to predict the bank's charges (Y) -- measured in dollars per month -- for services rendered to local companies.One independent variable used to predict service charges to a company is the company's sales revenue (X) -- measured in millions of dollars.Data for
21 companies who use the bank's services were used to fit the model: $$Y _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { i } + \varepsilon _ { i }$$
Theresultsofthesimplelinearregressionareprovidedbelow.
$$\bar { I } = - 2,700 + 20 X , S _ { Z X } = 65 \text {, two-tail } p \text { value } = 0.034 \text { (for testing } \beta _ { 1 } \text { ) }$$
-Referring to Scenario 12-1, a 95% confidence interval for $\beta$ 1 is (15, 30) .Interpret the interval.

• A)You are 95% confident that the mean service charge will fall between $15 and $30 per month.
• B)You are 95% confident that the sales revenue (X)will increase between $15 and $30 million for every $1 increase in service charge (Y).
• C)You are 95% confident that mean service charge (Y)will increase between $15 and $30 for every $1 million increase in sales revenue (X).
• D)At the \(\alpha\) = 0.05 level, there is no evidence of a linear relationship between service charge (Y)and sales revenue (X).

Analyze and calculate payments for different types of loans, including personal, auto, and mortgages.

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Master the concepts of net balance, finance charge, and new balance in credit terms.

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Definitions:

Demand Uncertainty

The unpredictability in the quantity and timing of customer demand for a product or service.

Flexible Source

A supply chain strategy that allows for the procurement of goods and services from multiple suppliers, enhancing adaptability and reducing dependency on single sources.

Forecast Accuracy

The degree to which a prediction or estimate corresponds to actual outcomes, often measured in the context of demand planning and supply chain management.

Overstocked Quantity

This term refers to an excessive amount of inventory beyond what is needed or can be sold, potentially leading to increased carrying costs and reduced efficiency.