Instruction 12-4
the Managers of a Brokerage Firm Are Interested

question 13

Short Answer

Instruction 12-4
The managers of a brokerage firm are interested in finding out if the number of new customers a broker brings into the firm affects the sales generated by the broker.They sample 12 brokers and determine the number of new customers they have enrolled in the last year and their sales amounts in thousands of dollars.These data are presented in the table that follows.
$\begin{array}{ccc}\text {Broker }&\text { Clients}&\text { Sales}\\\hline1 & 27 & 52 \\2 & 11 & 37 \\3 & 42 & 64 \\4 & 33 & 55 \\5 & 15 & 29 \\6 & 15 & 34 \\7 & 25 & 58 \\8 & 36 & 59 \\9 & 28 & 44 \\10 & 30 & 48 \\11 & 17 & 31 \\12 & 22 & 38\end{array}$
-Referring to Instruction 12-4,suppose the managers of the brokerage firm want to obtain both a 99% confidence interval estimate and a 99% prediction interval for X = 24.The confidence interval estimate would be the ________ (wider or narrower)of the two intervals.

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Definitions:

Responsibility Center

A business segment or department within an organization whose manager is accountable for specific financial and operational outcomes.

Investment Center

A business segment within a company for which the manager is responsible for generating revenue and controlling costs, with the ability to make significant investment decisions.

Department Manager

An individual responsible for overseeing a specific department within a company, ensuring its efficient operation and alignment with the organization's goals.

Investment Turnover Factor

A ratio measuring the efficiency of a company in generating sales or revenue from its investment in assets.