A Researcher Wants to Examine How the Remaining Balance on $100,000

question 46

Multiple Choice

A researcher wants to examine how the remaining balance on $100,000 loans taken 10 to 20 years ago depends on whether the loan was a prime or subprime loan. He collected a sample of 25 prime loans and 25 subprime loans and recorded the data in the following variables: Balance = the remaining amount of loan to be paid off (in $) ,
Time = the time elapsed from taking the loan,
Prime = a dummy variable assuming 1 for prime loans, and 0 for subprime loans.
The regression results obtained for the models:
Model A: Balance = β₀ + β₁Prime + ε
Model B: Balance = β₀ + β₁Time + β₂Prime + β₃Time × Prime + ε
Model C: Balance = β₀ + β₁Prime + β₂Time × Prime + ε,
Are summarized in the following table. Note: The values of relevant test statistics are shown in parentheses below the estimated coefficients.
Using Model C, which of the following is the predicted balance on a $100,000 prime loan taken 15 years ago?

• A) $88,020
• B) $69,486
• C) $74,591
• D) $82,183

Identify and describe the key methods of prospecting.

Recognize the role and applications of CRM technology in sales.

Understand the importance and effectiveness of different communication methods in sales.

Acquire strategies to engage with and qualify prospects.

---

Definitions:

Sequencer Input Instruction

A PLC programming instruction used to read a sequence of input conditions and process them according to a programmed sequence.

Unmasked Input Data

Data that is processed or transmitted in its original form without any form of obfuscation or encryption.

Reserve Banking

A banking system in which banks are required to hold a certain percentage of their deposits as reserves, either in their own vaults or deposited at a central bank.

Money Supply

The total sum of all financial assets in an economy at any given moment, which includes cash, coins, and the balances in checking and savings accounts.