What is the relationship among the mean, median and mode in a symmetric distribution?
Answer(s): E
Since the distribution is symmetric, all three are equal.
If you deposit $5,000 today and make an additional deposit of $3,000 in 3 years, how much is in the account 6 years from today, if the money earns interest at 8% per year, compounded annually?
Answer(s): D
This question requires the solution of two problems. Find the FV of the original $5,000 deposit which equals $7,934.37, then find the FV of the $3,000 deposit 3 years from now which equals $3779.14, and add the two together. On the BAII Plus, press 6 N, 8 I/Y, 5000 PV, 0 PMT, CPT FV. Then press STO 1. Then press 3 N, 3000 PV, CPT FV. Then press + RCL 1 = for the answer. On the HP12C, press 6 n, 8 i, 5000 PV, 0 PMT, FV.Then press STO 1. Then press 3 n, 3000 PV, FV. Then press RCL 1 + for the answer.
A study by the National Park Service revealed that 50% of the vacationers going to the Rocky Mountain region visit Yellowstone Park, 40% visit the Tetons and 35% visit both. What is the probability that a vacationer will visit at least one of these magnificent attractions?
Answer(s): B
0.5 + 0.4 - 0.35 = 0.55
Assume you buy a computer for $1,450 and agree to pay for it with 36 monthly payments of $55, beginning next month. What is the size of the final payment needed at month 36 to completely pay off the computer, if the interest rate you are being charged is 16% per year, compounded monthly?
This question describes a situation often called a balloon payment. On the BAII Plus, press 36 N, 16 divide 12 = I/Y, 1450 PV, 55 +/- PMT, CPT FV. On the HP12C, press 36 n, 16 ENTER 12 divide i, 1450 PV, 55 CHS PMT, FV. The answer is shown as a negative number. Make sure the BAII Plus has the value of P/Y set to 1.
A positively skewed distribution:
In a positively skewed distribution, large values are more common than correspondingly small values. This skews the distribution to the right, moving the mean to the right of the median.
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