If the Critical Values for a Run Test (Found from Table

question 8

Multiple Choice

If the critical values for a run test (found from table A-10) are 8 and 19 and the G value is 17, what should your conclusion about randomness be?

• A) Reject randomness.
• B) Fail to reject randomness.
• C) Support randomness.

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Definitions:

Effective Annual Rate

The effective annual rate is the real return on an investment, taking into account the effect of compounding interest over a year.

Annual Rate

The interest rate charged per year on a loan, or earned on an investment, not accounting for the effect of compounding within that year.

Actual Rate

The real interest rate or return rate earned on an investment, as opposed to the nominal or advertised rate.

Interest

The cost of borrowing money or the return on investment capital, usually expressed as a yearly percentage.