When a researcher uses the classes 129-147, 147-165, 165-183 to create a distribution, he is violating which of the following suggested practices?
Answer(s): D
The classes are overlapping (for e.g., the classes "147-165" and "165-183" have the point "165" in common).There are no open-ended classes and the classes have the same class interval. Note that "Avoid a use of non- standard class marks" is a bogus choice; there is no such suggested practice.
Your distant uncle's will specifies that you will receive a 20-year annuity of $10,000 a year, the payments starting seven years from now. How much is the annuity worth to you today if your discount rate is 4% per year?
Answer(s): A
The payments start at the end of 7 years. Thus, at the end of year 6, the annuity will be worth 10,000/0.04*(1-1/ (1.04^20)) = 135,903. The present value of this amount is 135,903/(1.04^6) = 107,406.
What do we call the value called z that is computed using sample data?
Answer(s): B
The z-values are statistics generated to provide a measure of testing the hypothesis.
Carlson Jewelers permits the return of their diamond wedding rings, provided the return occurs within two weeks of the purchase date. Their records reveal that 10 percent of the diamond wedding rinds are returned. Five rings are bought by five different customers. What is the probability that none will be returned?
This is a binomial probability. The probability of getting r successes out of n trials where the probability of success each trial is p and probability of failure each trial is q (where q = 1-p) is given by: n!(p^r)[q^(n-r)]/r!(n-r)!.Here n = 5, r = 0,p = 0.10 and q = 0.90. Therefore we have 5!(0.1^0)(0.9^5)/0!5! = 0.590.
What is the annual Internal Rate of Return of this series of annual cash flows: Year 0: <$4,000>, Year 1:$2,000, Year 2: $0, Year 3: $0, Year 4 number).
On the BAII Plus, press CF 2nd CLRWork 4000 +/- ENTER DownArrow 2000 ENTER DownArrow DownArrow 0 ENTER DownArrow DownArrow 0 ENTER DownArrow DownArrow 4000 ENTER DownArrow DownArrow 2nd Quit. Then press Irr CPT. On the HP12C, press these keys: 4000 CHS BlueShift CFo 2000 BlueShift CFj 0 BlueShift CFj 0 BlueShift CFj 4000 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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