A Proposed Loan Is Acceptable to the Lender When the Net

question 89

Short Answer

A proposed loan is acceptable to the lender when the net rate of return from a customer profitability analysis is _____________________.

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Definitions:

Degrees of Freedom

The number of independent values or quantities that can vary in an analysis without violating any constraints.

Mean

The arithmetic average of a set of values, calculated by summing up all the values and then dividing by the number of values.

F Distribution

A probability distribution that arises in the analysis of variances for comparing sample variances or testing the hypothesis of equal variances, used primarily in ANOVA.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or equation, typically affecting the shape of the distribution.