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An airline wants to select a computer software package for its reservation system. Four software packages (1, 2, 3, and 4) are commercially available. The airline will choose the package that bumps as few passengers, on the average, as possible during a month. An experiment is set up in which each package is used to make reservations for 5 randomly selected weeks. (A total of 20 weeks was included in the experiment.) The number of passengers bumped each week is given below. How should the data be analyzed?
Package 1: 12, 14, 9, 11, 16
Package 2: 2, 4, 7, 3, 1
Package 3: 10, 9, 6, 10, 12
Package 4: 7, 6, 6, 15, 12
Promissory Note
A written, legally binding promise to pay a specified sum of money to a designated person at a specified date or upon demand.
Compounded Semiannually
Interest calculation method that applies the interest to the principal balance and the accumulated interest twice each year.
Simple Annualized Yield
A calculation of investment earnings that does not account for compounding within the year, expressed as an annual rate.
Effective (Annualized) Yield
The effective, or annualized yield, calculates the return on an investment by taking into account the effect of compounding interest over a one-year period.
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