SCENARIO 1-1 The Manager of the Customer Service Division of a Major

question 105

Multiple Choice

SCENARIO 1-1
The manager of the customer service division of a major consumer electronics company is interested in determining whether the customers who have purchased a Blu-ray player made by the company over the past 12 months are satisfied with their products.
-Referring to Scenario 1-1,the possible responses to the question "What is your annual income rounded to the nearest thousands?" are values from a

• A)discrete numerical variable.
• B)continuous numerical variable.
• C)categorical variable.
• D)table of random numbers.

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Definitions:

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

Discount Rate

The interest rate used to calculate the present value of future cash flows.

Present Values

The today's worth of a future cash amount or cash flow series, determined by a given rate of return.

Discounting

The process of determining the present value of future cash flows by applying a discount rate, reflecting the time value of money.