The Standard Deviation of the Daily Temperatures in Honolulu Last $\alpha$

question 63

Essay

The standard deviation of the daily temperatures in Honolulu last year was 4 degrees Fahrenheit. A random sample of 25 days resulted in a standard deviation of 5.8 degrees Fahrenheit. Has there been a significant increase in the variance of the temperatures? Use $\alpha$ = 0.05.

Determine the future value of annuities using the concepts of ordinary annuity and annuity due.

Compute the present value of single sums and annuities under various compounding frequencies.

Apply the concepts of discounting and compounding to determine the value of cash flows at different points in time.

Understand and use financial tables and formulas to find present and future values.