A Banker Is Analyzing a Company That Operates in the Automotive

question 16

Multiple Choice

A banker is analyzing a company that operates in the automotive industry.Which of the following will likely be the banker's most important consideration when determining whether the company should receive a loan?

• A) The automotive industry faces political pressures regarding environmental regulation.
• B) Inflation has been consistently high for several years.
• C) The company has state-of-the-art automated equipment that enhances its operating efficiency.
• D) The company has a large amount of interest payments related to other outstanding loans.

---

Definitions:

Relative Frequencies

The ratio of the number of times a particular value occurs to the total number of observations.

Distribution

Distribution in statistics refers to the way in which values of a variable or observations are spread out or scattered across a range, showing the frequency of each value.

Sum

The result of adding two or more numbers or quantities together to get a total.

Relative Frequency Distribution

A statistical measure that shows the frequency of different outcomes in a dataset relative to the total number of outcomes.