Suppose you need $500 in 20 months. How much must you deposit today, if the deposit will earn interest at 8% per year, compounded monthly?
Answer(s): B
On the BAII Plus, press 20 N, 8 divide 12 = I/Y, 0 PMT, 500 FV, CPT PV. On the HP12C, press 20 n, 8 ENTER 12 divide i, 0 PMT, 500 FV, PV. Make sure the BAII Plus has the P/Y value set to 1.
A study of the opinion of designers with respect to the primary color most desirable for us in executive offices showed that:Primary Color Number of OpinionsRed 92Orange 86Yellow 46Green 91Blue 37Indigo 46Violet 2What is the probability that a designer does not prefer red?
Answer(s): C
There are 400 opinions of which 92 prefer red. The other 308 do not prefer red. Therefore the probability of not preferring red is 308/400 = 0.77.
Events A and B are mutually exclusive. P(A) = 0.45, P(B) = 0.27. The probability of neither A nor B occurring equals ________.
Answer(s): A
The probability of neither A nor B occurring equals one minus the probability of either A or B occurring i.e. P (neither A nor B) = 1 - P(A or B). Now,P(A or B) = P(A) + P(B) - P(A and B).Also, for mutually exclusive events, P(A and B) = 0 by definition. Therefore, P(A or B) = 0.45 + 0.27 = 0.72. Finally, P(neither A nor B) = 1 - P(A or B) = 1 - 0.72 = 0.28.
A selected group of employees of Unique Buying Services is to be surveyed with respect to a new pension plan. In depth interviews are to be conducted with each employee selected in the sample. The employees are classified as follows.Classification Event Number of EmployeesSupervisors A 120Maintenance B 50Production C 1,460Management D 302Secretarial E 68What is the probability that the first person selected is in management AND in supervision?
There are 2000 employees of which 302 are in management and 120 in supervision. However, there are no employees who are in both management and supervision. Therefore the probability is 0.
What is the annual Internal Rate of Return of this series of annual cash flows: Year 0: <$25,000>, Year 1:$5,000, Year 2: $0, Year 3: $30,000? (Note that the <> are used to indicate a negative number).
Answer(s): D
On the BAII Plus, press CF 2nd CLRWork 25000 +/- ENTER DownArrow 5000 ENTER DownArrow DownArrow 0 ENTER DownArrow DownArrow 30000 ENTER DownArrow DownArrow 2nd Quit. Then press Irr CPT. On the HP12C, press these keys: 25000 CHS BlueShift CFo 5000 BlueShift CFj 0 BlueShift CFj 30000 BlueShift CFj Then press YellowShift Irr. The "DownArrow" represents the downward-pointing arrow on the top row of the BAII Plus keyboard. Make sure the BAII Plus has the P/Y value set to 1.
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