What annual interest rate, compounded annually, will cause a deposit of $550 to become $1,475 in 15 years?
Answer(s): E
On the BAII Plus, press 15 N, 550 PV, 1475 +/- FV, 0 PMT, CPT I/Y. On the HP12C, press 15 n, 550 PV, 1475 CHS FV, 0 PMT, i.
A trial generates only two results, "success" and "failure." The variance of the number of failures in 20 trials equals 2.35. The probability of success on a given trial equals ________.
Answer(s): B
For a binomial distribution with N trials, with the probability of success = p in each trial, the variance equals Np (1-p). Hence, 20*p*(1-p) = 2.35. Solving this gives quadratic equation gives p = 0.136.
Suppose you need $800 in 20 months. How much must you deposit today, if the deposit will earn interest at 8% per year, compounded monthly?
On the BAII Plus, press 20 N, 8 divide 12 = I/Y, 0 PMT, 800 FV, CPT PV. On the HP12C, press 20 n, 8 ENTER 12 divide i, 0 PMT, 800 FV, PV. Make sure the BAII Plus has the P/Y value set to 1.
A statistician is working with the following dataset:129, 162, 159, 192, 142, 195, 203, 177, 138, 187, 149, 123, 146, 169, 162, 191, 155, 146, 176, 182, 174, 190, 168.The relative frequency in the frequency class 150-175 equals ________.
Answer(s): A
There are 23 observations. Of these, 7 lie in the 150-175 class.relative frequency = class frequency/total # of observations= 7/23 = 0.30Remember that relative frequency is always a number between zero and one.
An investment of $275 grows to $400 in 3 years. The holding period return is:
Answer(s): C
The holding period return (HPR) is 400 / 275 = 1.455
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