QUESTION: 1157

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 ________.

0.66
0.136
0.231
0.452

Answer(s): B

Explanation:

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.

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QUESTION: 1158

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?

$607.27
$700.45
$1,330.48
$949.93
$571.06

Answer(s): B

Explanation:

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.

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QUESTION: 1159

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 ________.

0.30
0.29
7.00
0.34

Answer(s): A

Explanation:

There are 23 observations. Of these, 7 lie in the 150-175 class.
relative frequency = class frequency/total # of observations
= 7/23 = 0.30
Remember that relative frequency is always a number between zero and one.

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QUESTION: 1160

An investment of $275 grows to $400 in 3 years. The holding period return is:

1.13
0.6875
1.455
1.455

Answer(s): C

Explanation:

The holding period return (HPR) is 400 / 275 = 1.455

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QUESTION: 1157

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QUESTION: 1158

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QUESTION: 1159

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QUESTION: 1160

Explanation:

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