TABLE 13-4 The Managers of a Brokerage Firm Are Interested in Finding

question 41

Short Answer

TABLE 13-4
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.
-Referring to Table 13-4, suppose the managers of the brokerage firm want to construct both a 99% 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:

Contract Rescission

The legal act of canceling a contract and returning the parties involved to their positions before the contract was signed.

Mistake Of Value

A legal concept referring to an error made by one or both parties at the time of contract formation, concerning the value of the goods or services to be exchanged.

European Courts

Judicial institutions operating within Europe, including both national courts of individual sovereign countries and transnational courts such as the European Court of Justice.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to another, when the latter has reasonably relied on that promise to their detriment.