A Salesperson Is Paid a Commission on Each Sale

question 5

Multiple Choice

A salesperson is paid a commission on each sale.This person made $2,000 in their first month on the job.Based on this the salesperson concludes they will make $24,000 during their first year.This is an example of ___.

• A)inferential statistics
• B)nominal data
• C)descriptive statistics
• D)deferential statistics
• E)nonparametric statistics

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Definitions:

Effective Annual Rates

The real return on an investment, taking into account the effect of compounding interest over multiple periods within a year.

Equal Installments

Periodic payments of the same amount over the term of a loan or investment.

Borrowed

Borrowed refers to funds that have been taken on loan from external sources, which are expected to be paid back with interest over time.

Daily Compounding

The process where the interest on an investment is calculated daily and added to the principal, so that each subsequent calculation of interest includes interest previously earned.