All Other Things Being Equal,as the Time Period for Receiving

question 138

Multiple Choice

All other things being equal,as the time period for receiving an annuity lengthens,

• A)the related present value factors increase.
• B)the related present value factors decrease.
• C)the related present value factors remain constant.
• D)it is impossible to tell what happens to present value factors from the information given.

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Definitions:

Prediction Equation

An equation used to predict the value of a dependent variable based on the values of one or more independent variables.

Multiple Regression

A statistical method leveraging various predictors to estimate the result of a dependent variable.

Stepwise Regression

A method of fitting regression models in which the choice of predictive variables is carried out by an automatic procedure.

Multicollinearity

Describes a situation in statistical models where independent variables are highly correlated, leading to difficulties in estimating separate effects.