You Have $3,000 That You May Need Any Day to Replace

question 3

Multiple Choice

You have $3,000 that you may need any day to replace the furnace in your house. Which of the following would be the best place to put the $3,000?

• A) A one-year CD earning 4%
• B) A common stock mutual fund earning 9%
• C) A savings account earning 2%
• D) Shares of stock in a high-tech company that could double in 6 months

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Definitions:

Normal Distribution

A bell-shaped distribution of data where most values cluster around a central mean or average value.

Mental Age

An estimate of an individual's level of cognitive development compared to others, based on performance in intelligence tests.

Intelligence Quotient

A standardized score derived from one of several different standardized tests designed to assess human intelligence.

Culture-Fair

Refers to tests or assessments designed to be free of cultural bias, aiming to measure intelligence or other attributes equitably across different cultures.