If you deposit $10,000 into an account paying 6% per year, compounded semiannually, how much do you have in the account in 10 years?
Answer(s): B
On the BAII Plus, press 20 N, 6 divide 2 = I/Y, 10000 PV, 0 PMT, CPT FV. On the HP12C, press 20 n, 6 ENTER 2 divide i, 10000 PV, 0 PMT, FV. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the value of P/Y set to 1.
An automatic machine inserts mixed vegetables into a plastic bag. Past experience revealed that some packages were underweight and some were overweight, but most of them had satisfactory weight.Weight % of TotalUnderweight 2.5Satisfactory 90.0Overweight 7.5Three packages are selected from the food processing line. What is the probability of selecting and finding that all three of them are satisfactory?
Answer(s): C
P(all three satisfactory) = 0.9*0.9*0.9 = 0.729.
The p-value in hypothesis testing:
Answer(s): D
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.None of the choices fit this definition of the p-value.
You are running a year-end bonus pool for your top credit analysts. You have 10 analysts, and you wish to recognize the top 3. How many different possible outcomes are there, if all three get the same bonus? How many different outcomes are there if the top analyst gets 50% of the bonus pool, the second best analyst gets 30%, and the third best gets 20%?
The combination, or binomial formula, gives the number of ways that k objects can be chosen from n items, without regard to the order of choosing. The formula is n_C_k = (n choose k) = n! / [k! *(n-k)!]. In this case, we have (10 choose 3) = 10! / [3! * 7!] = (10* 9 * 8) / (6) = 120. In the second case, where the order chosen does matter, we need the general permutation formula, which gives the number of ways that k objects can be chosen from n items, with regard to order. The formula is n_P_k = n! / (n- k)!. Here, it is 10! / (10-3)! = 720. For permutations, we don't consider choosing analysts 3, 7, and 6 the same as choosing analysts 7, 3, and 6, so there are more combinations than under the combination formula.
If the cost of a hamburger is $1.99 today, what would it cost in 30 years, assuming the price increases at a rate of 8% per year, compounded annually?
Consider the $1.99 as a PV and solve for the FV. On the BAII Plus, press 30 N, 8 I/Y, 1.99 PV, 0 PMT, CPT FV. On the HP12C, press 30 n, 8 i, 1.99 PV, 0 PMT, FV. Make sure the BAII Plus has the P/Y value set to 1.
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