If You Deposit $8,000 in a Bank, Calculate How Much

question 7

Essay

If you deposit $8,000 in a bank, calculate how much the bank must keep as required reserves and how much it can loan out if the required reserve ratio was 5 percent. If it was 8 percent? 13 percent? 26 percent?

Learn to calculate bootstrap standard errors and understand their significance.

Grasp the methodology to calculate P-values for permutation tests.

Understand the factors influencing variation in bootstrap distributions.

Learn to apply bootstrap methods to estimate and interpret measures of central tendency in skewed distributions with outliers.

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Definitions:

Ethical Decision-Making

The procedure of scrutinizing and opting for alternatives that adhere to principles of ethics.

Rights Approach

A decision-making method based on using moral principles that least infringe on the entitlements of others.

Moral Principles

Fundamental beliefs about what is right and wrong that guide an individual's behavior and decision-making.

Entitlements

Rights or benefits that individuals are granted according to law or agreement.