I If We Are Studying the Relationship Between High School

question 53

Multiple Choice

i. If we are studying the relationship between high school performance and college performance, and want to predict college performance, high school performance is the independent variable.
ii. A financial advisor is interested in predicting bond yield based on bond term, i.e., one year, two years, etc. The dependent variable is bond yield.
Iii) The variable used to predict the value of another is called the independent variable.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) and (ii) are correct statements, but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) All statements are false

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Definitions:

Monthly Interest Charge

The amount charged by a lender to a borrower for the use of assets on a monthly basis, calculated as a percentage of the principal.

Real Rate

The interest rate that has been adjusted for inflation, reflecting the true cost of borrowing or the true yield on an investment.

Inflation

Inflation refers to the rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Loan

A loan is an amount of money that is lent to a borrower, who agrees to repay it, plus interest, over a specified period of time.