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Using regression analysis on historical loan losses, a bank has estimated the following for the loss rate in the personal loan section: XP= 0.03 + 1....
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Using regression analysis on historical loan losses, a bank has estimated

the following for the loss rate in the personal loan section: XP = 0.03 + 1.16XL, where XL is the loss rate in the total loan portfolio. If the bank's total loan loss rates increase by 5.84%, what is change in the expected loss rate in the personal loan section?


Select one:
a. An increase of 9.77%
b. An increase of 7.03%
c. An increase of 6.80%
d. An increase of 5.84%

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Subject: Business, Finance

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