Interest Calculated on the Original Principal Regardless of the Amount

question 65

Multiple Choice

Interest calculated on the original principal regardless of the amount of interest that has been paid or accrued in the past is ________.

• A) principal interest
• B) original interest
• C) simple interest
• D) compound interest

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Definitions:

Unbiased Estimator

A statistic used to estimate a parameter of a population that, on average, exactly equals the true parameter.

Variance

Variance measures the dispersion of a set of data points around their mean value, quantifying how spread out the data points are.

Error Variable

The difference between observed and predicted values in a statistical model, representing unexplained or random variability.

Regression Analysis

A statistical method for modelling the relationship between a dependent variable and one or more independent variables.