In Computing Descriptive Statistics from Grouped Data

question 86

Multiple Choice

In computing descriptive statistics from grouped data,

• A) data values are treated as if they occur at the midpoint of a class.
• B) the grouped data result is more accurate than the ungrouped result.
• C) the grouped data computations are used only when a population is being analyzed.
• D) none of these alternatives is correct.

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Definitions:

Compounded Semi-Annually

Interest calculated on the principal and previously earned interest twice a year.

Quarterly Compounded

An interest calculation method where interest is added to the principal every quarter, increasing the amount of interest earned or paid.

Nominal Rate

Nominal Rate refers to the interest rate before adjustments for inflation or other factors. It is the rate quoted on loans and savings without taking into account the real purchasing power of the money.

GIC

Guaranteed Investment Certificate, a Canadian investment that offers a guaranteed rate of return over a fixed period.