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

question 179

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 90% confidence interval for the mean change in the amount of time needed as a result of recording one additional loan application is

• A)wider than [0.1492,0.6555].
• B)narrower than [0.1492,0.6555].
• C)wider than [0.0109,0.0143].
• D)narrower than [0.0109,0.0143].

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Definitions:

Contribution Margin

The amount by which sales revenue exceeds variable costs, contributing towards fixed costs and profit.

Selling Price

The amount of money charged to customers for a product or service, determined by factors like cost, market demand, and competition.

Break-even Sales

The amount of revenue from sales that is exactly sufficient to cover all fixed and variable expenses, resulting in zero profit or loss.

Break-even Point

The point at which total expenses match total income, leading to neither a loss nor a profit.