If the Interest Rate Is 5%, the One-Year Discount Factor

question 42

Multiple Choice

If the interest rate is 5%, the one-year discount factor is equal t?

• A) 1.045.
• B) 1.050.
• C) 0.050.
• D) 0.952.

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Definitions:

Population

Total number of possible units or elements that could potentially be included in a study.

Statistics

Branch of mathematics dealing with the collection, analysis, interpretation, and presentation of masses of numerical data.

Null Hypothesis

A formal statement that assumes no association or effect between variables, serving as the basis for statistical significance testing.

Hypothesis Testing

A statistical method used to determine if there is enough evidence in a sample of data to infer that a certain condition holds true for the entire population.