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An Exclusive Preschool Program Has Strict Enrollment Criteria and Only

question 63

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An exclusive preschool program has strict enrollment criteria and only accepts children with very high marks on the enrollment test. Unfortunately, they have found that the enrollment test does not correlate highly with the grades the children make. The probable reason is


Definitions:

Compounded Semi-annually

This refers to the process of calculating interest on an investment or loan, with the interest being added to the principal balance twice a year, typically every six months.

Strip Bond

A bond where both the principal and regular interest payments have been separated and are sold individually.

Yield Rate

The rate of return on an investment over a specified period, expressed as a percentage, considering both interest and dividends.

Compounded Semi-annually

When interest is compounded semi-annually, it is calculated and added to the principal amount twice a year.

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