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TABLE 12-15
The director of the MBA program of a state university wanted to know if a one week orientation would change the proportion among potential incoming students who would perceive the program as being good. Given below is the result from 215 students' view of the program before and after the orientation.
-Referring to Table 12-15, the director should reject the null hypothesis using a 1% level of significance.
Future Value
The value of an existing asset at a future date based on an assumed rate of growth over time.
Compounded Annually
This term refers to the process of adding interest to the principal sum of a loan or deposit, or in other words, interest on interest, with the effects of compounding happening once per year.
Present Values
The value today of a future sum or series of cash payments, calculated using a particular rate of return, for the purpose of discounting and assessing investment options.
Discount Rate
The discount rate applied in the discounted cash flow (DCF) methodology to calculate the current value of anticipated cash flows, considering the time value of money and associated risks.
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