SCENARIO 13-12 The Manager of the Purchasing Department of a Large Saving

question 203

Multiple Choice

SCENARIO 13-12
The manager of the purchasing department of a large saving and loan organization would like to develop a model to predict the amount of time (measured in hours) it takes to record a loan application. Data are collected from a sample of 30 days, and the number of applications recorded and completion time in hours is recorded. Below is the regression output:




-Referring to Scenario 13-12,the value of the measured t-test statistic to test whether the amount of time depends linearly on the number of loan applications recorded is

• A)0.8924
• B)3.2559
• C)15.2388
• D)232.2200

---

Definitions:

Externality Problems

Occurrences in which the production or consumption of goods and services imposes costs or benefits on third parties not involved in the transaction.

Government Intervention

The involvement by government in the market to influence the allocation of resources and distribution of income.

Coase Theorem Solution

A theory suggesting that if trade or negotiation over property rights is allowed without cost, parties can reach an agreement regarding the allocation of resources regardless of the initial allocation.

Mutually Agreeable

A situation or outcome in negotiations or agreements that all parties involved accept and are satisfied with.