Consider the Following Two FIs: Company a Has $500 Million

question 12

Multiple Choice

Consider the following two FIs: Company A has $500 million in total assets and total costs equal to $200 million. Company B has $60 million in total assets and total costs equal to $24 million
-What are average costs for each FI?

• A) 0.40 for A and 2.50 for B.
• B) 2.50 for both A and B.
• C) 2.50 for A and 0.40 for B.
• D) 0.40 for both A and B.
• E) Insufficient information.

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Definitions:

Alpha

The significance level in hypothesis testing, representing the probability of making a Type I error.

Free Throw Percentage

A statistical measure in basketball representing the ratio of free throws made to free throws attempted.

Proficiency

The ability to do something very well because of training and practice.

Power of the Test

The probability of correctly rejecting a false null hypothesis, indicating a test's ability to detect an effect if there is one.