THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 57

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A sample of 150 students at a State University was taken after the final business statistics exam to ask them whether they went partying the weekend before the final or spent the weekend studying,and whether they did well or poorly on the final.The following table contains the result.

-Of those in the sample who did well on the final exam,what percentage of them went partying the weekend before the exam?

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Definitions:

Real Rate

The real rate is the interest rate that has been adjusted for inflation, representing the true cost of borrowing or the real yield on an investment, distinct from the nominal rate.

Expectations Theory

A theory that suggests long-term interest rates reflect the market's expectation for future short-term rates, assuming that investors have no preference for long versus short maturities.

Liquidity Preference Theory

A theory ofthe shape of the yield curve. The curveslopes upward because, all other thing equal, investors prefer shorter, moreliquid investments. They must therefore be induced to lend longer withhigher rates

Market Segmentation Theory

A theory of the shape of the yield curve. The debt market is segmented by term, and each segment is independent of the others. Hence, the curve slopes up or down depending on supply and demand conditions in the various market segments.