Tara Pineno, New-Accounts Manager at East Bank of Clarion, Has

question 21

Essay

Tara Pineno, new-accounts manager at East Bank of Clarion, has been asked to project how many new accounts she will open during 20 x 2. The local economy has been growing, and the bank has experienced a 10% increase in the number of new accounts over each of the past five years. In 20 x 1, the bank had 10,000 accounts.
Tara is paid a salary, plus a bonus of $20 for every new account above the budgeted amount. Thus, if the annual budget calls for 1,000 new accounts, and 1,080 new accounts are obtained, her bonus will be $1,600 (80 x $20).
Pineno believes that the local economy will continue to grow at the same rate in 20 x 2 as it has in recent years. She decided to submit a projection of 700 new accounts for 20 x 2.
Required:
Your consulting firm has been hired by the bank president to make recommendations for improving the bank's operation. Write a memorandum to the president defining and explaining the negative consequences of budgetary slack. Also discuss the bank's bonus system for the new-accounts manager and how the bonus program tends to encourage budgetary slack.

Distinguish between legal offers, invitations to treat, and unilateral and bilateral contracts.

Identify the effects of counter-offers, inquiries, revocations, and acceptances on the validity of an offer.

Analyze the importance of capacity, consideration, and intention in forming a contract.

Comprehend the significance and application of the postbox rule in contract law.

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Definitions:

Null Hypothesis

A statement or hypothesis in statistical inference that implies no effect or no difference, and it serves as the default or starting assumption for hypothesis testing.

Type I Error

Erroneously rejecting a valid null hypothesis, which is also known as a "false positive."

Null Hypothesis

A hypothesis that suggests there is no statistical significance between the two variables being studied.

Rejecting

In statistical hypothesis testing, it refers to the act of dismissing the null hypothesis based on the level of significance and the test statistic.