By the Year 2016 You Will Have Made Your First

question 83

Multiple Choice

By the year 2016 you will have made your first million dollars.You invest it in a new company on January 1, 2017.The new company starts to earn a profit six months later.Thus, starting July 1, 2017, you receive income from the company in a continuous stream at a constant rate of 1/2 million dollars per year. Your bank offers interest at a nominal rate of 8% per year, compounded continuously.When will you have received an income of $1 million from the company? (Do not take into account the bank's interest; this question is simply asking when the total income you have received will reach $1 million.)

• A)July 1, 2019
• B)January 1, 2019
• C)July1, 2018
• D)January1, 2018

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Definitions:

Null Hypothesis

A hypothesis in statistical testing that proposes no statistical significance exists in a set of given observations.

Chi-square Test

A statistical test used to determine the association between categorical variables, measuring how expectations compare to actual observed data.

Proportion

In statistics, it measures the part or fraction of the total that exhibits a specific trait or characteristic.

Approval Rating

A measurement often used in politics to indicate the percentage of respondents to a poll who approve of a leader or governing body.