When Is a Broker Allowed to Assume a Deal Is

question 386

Multiple Choice

When is a broker allowed to assume a deal is closed:

• A) When one of the principals confirms the deal.
• B) When the principals give a written undertaking for all deals done at the end of the day.
• C) When an acknowledgement is received from the principal that the deal is done.
• D) When both back offices acknowledge the deal.

---

Definitions:

Error Term

In statistical modeling, particularly regression analysis, it represents the part of the dependent variable that the model does not explain, accounting for random factors or the difference between observed and predicted values.

Random Variable

A numerical description of the outcome of an experiment.

Mean

A measure of central location computed by summing the data values and dividing by the number of observations.

Multiple Regression Model

The mathematical equation that describes how the dependent variable y is related to the independent variables x1, x2, . . . , xp and an error term e.