Compare the Economic Values of Two Options Given an Annual

question 274

Multiple Choice

Compare the economic values of two options given an annual rate of 6.6%. Option 1 - $900 in 90 days and $1,200 in 120 days. Option 2 - $850 in 240 days and $1,390 in 320 days. Given the following information, choose the best option.

• A) Option 1 - benefit of $22.35
• B) Option 1 - benefit of $68.51
• C) No difference between options
• D) Option 2 - benefit of $22.35
• E) Option 2 - benefit of $68.51

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Definitions:

Variables

Elements, factors, or conditions that are subject to change or variation within a study.

Confirmatory Factor Analysis (CFA)

A statistical technique used to test the hypothesis that a relationship between observed variables and their underlying latent constructs exists.

Cross-validation

A statistical method used to estimate the performance of a model by partitioning the data into subsets, training the model on one subset, and validating it on another.

Factor Analysis

A statistical method used to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables.