Production of passenger cars in Japan increased from 3.94 million in 1986 to 6.74 million in 1994. What is the geometric mean annual percent increase?
Answer(s): E
There are 9 years involved. The geometric mean = [(1 + 6.74/3.94)^1/8] - 1. In words, it is the 8th square root of (1 + 6.74/3.94) minus 1. So we have GM = (1 + 1.7107)^(1/8) - 1 = 0.069 = 6.9%
A very small p-value calculated in a sample implies that:
Answer(s): A
The lowest significance level at which the null hypothesis can be rejected is called the p-value of the test. Thus, if the p-value is less than the significance level, the null hypothesis can be rejected at that significance level.
The results of the regressions using 200 observation on a variable Y against X are as follows:Coefficient Standard errorintercept 3.62.1slope 8.11.3R square = 49%If an observation on X indicates X = 5 the estimated value of Y would be ________.
From the information given, the regression equation is Y = 3.6 + 8.1X + error term. The expected value of the error is zero. Hence, when X = 5, the estimated value of Y equals 3.6 + 8.1*5 = 44.1.
How much must you deposit today if you wish to have $50,000 in 20 years, assuming that interest accumulates at 6% per year, compounded annually?
On the BAII Plus, press 20 N, 6 I/Y, 0 PMT, 50000 FV, CPT PV. On the HP12C, press 20 n, 6 i, 0 PMT, 50000 FV, PV. Note that the answer is displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.
You have just received a sales brochure from a reputable investment firm which describes a financial investment vehicle which pays $300 at the end of year 1, $500 at the end of year 2 and $100 at the end of year3. If you are looking for an annual return of 6%, what's the maximum amount you should be willing to purchase this investment certificate for?
Answer(s): D
The maximum amount you should pay equals the present value of the payments (you would like to pay less!).This equals 300/1.06 + 500/(1.06^2) + 100/(1.06^3) = $812.
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