QUESTION: 777

A test statistic is:

a value calculated from a sample and used to accept or reject the null hypothesis.
all of these answers.
a sample value that is used to measure a population parameter.
a parameter characterizing the null hypothesis.

Answer(s): A

Explanation:

A test statistic is a value calculated from a sample and used to accept or reject the null hypothesis concerning a population's parameter.

Reveal Solution Next Question

QUESTION: 778

If you deposit $250 a year, beginning next year, for 30 years into an account paying 6% per year, compounded annually, how much is in your account after that last deposit?

$21,149.52
$12,334.91
$19,764.55
$18,304.12
$3,441.21

Answer(s): C

Explanation:

On the BAII Plus, press 30 N, 6 I/Y, 0 PV, 250 PMT, CPT FV. On the HP12C, press 30 n, 6 i, 0 PV, 250 PMT, FV. Note that the answer is displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.

Reveal Solution Next Question

QUESTION: 779

What is the present value of $250 per year for 6 years, with the first cash flow occurring today, rather than 1 year from now? Assume interest is 7% per year, compounded annually.

$1,209.48
$1,500.00
$1,191.63
$1,275.05
$1,293.55

Answer(s): D

Explanation:

Recognize that this question is an annuity due situation, since the first cash flow occurs immediately or at the beginning of each period. Annuities where the first payment occurs 1 period from today (or at the end of each period) are called "ordinary" annuities. This requires placing the calculator into "Begin" mode prior to solving the question. NOTE: Be sure to place the calculator OUT OF annuity due mode after this question before going on to subsequent questions, or you will get the wrong answers! On the BAII Plus, press 2nd BGN. If the display shows END, then press 2nd SET and then 2nd Quit. This will place the BAII Plus into annuity due mode (you can tell this because the BAII Plus will display BGN in small letters). Now press 6 N, 7 I/Y, 250 PMT, 0 FV, CPT PV. Place the calculator back into End mode (for ordinary annuities) by pressing 2nd BGN and then if the calculator is displaying BGN, press 2nd SET and 2nd Quit. The BGN letters should disappear from the display.
On the HP12C, press BlueShift END, which is the blue function on the front of the 8 digit key. This places the HP12C into Begin mode (the HP12C shows the word BEGIN in the display when in this mode). Then press 6 n, 7 i, 250 PMT, 0 FV, PV. To place the HP12C back into ordinary annuity mode (or END mode), press BlueShift BEG (the blue function written on the front of the 7 digit key). Note that the answer is displayed as a negative number. Make sure the BAII Plus has the value of P/Y set to 1.

Reveal Solution Next Question

QUESTION: 780

Assume you buy a car for $20,000 today and agree to pay $200 a month, beginning next month, for 4 years with a final payment also due 4 years from today to pay off any remaining balance. How large will that final payment be, if interest accrues at 5.9% per year, compounded monthly?

$19,590.32
$24,280.77
$19,204.41
$10,400.00
$14,511.19

Answer(s): E

Explanation:

There are 48 months in 4 years. This is a problem known as a balloon payment. On the BAII Plus, press 48 N, 5.9 divide 12 = I/Y, 20000 PV, 200 +/- PMT, CPT FV. On the HP12C, press 48 n, 5.9 ENTER 12 divide i, 20000 PV, 200 CHS PMT, FV. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the value of P/Y set to 1.

Reveal Solution Next Question

Free CFA-Level-I Exam Braindumps (page: 195)

QUESTION: 777

Explanation:

QUESTION: 778

Explanation:

QUESTION: 779

Explanation:

QUESTION: 780

Explanation: