Suppose Bank of America Would Like to Investigate If the Credit

question 54

Multiple Choice

Suppose Bank of America would like to investigate if the credit score and income level of an individual are independent of one another. Bank of America selected a random sample of 400 adults and asked them to report their credit score range and their income range. The following contingency table presents these results. The expected number of individuals with income less than $50,000 and a credit score between 650 and 750 is ________.

• A) 24.0
• B) 26.0
• C) 32.5
• D) 52.0

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Definitions:

Aging

A process or method used to categorize accounts receivable based on their time outstanding.

Receivables Growth Rate

The rate at which a company's accounts receivable balance is increasing over a specific period, indicating the speed of cash inflow acceleration.

Sales Data

Information and records related to the quantity, price, and terms of sales transactions made by a company.

Sale of Receivables with Recourse

A financial transaction where a company sells its receivables to another party but remains liable if the party owing the receivables fails to pay.