If You Make an Investment That Returns 10% the First

question 14

Multiple Choice

If you make an investment that returns 10% the first year, 20% the second year, and 12% the third year, what is your total 3-year return? Round your answer to the nearest tenth of a
Percent.

• A)21.6%
• B)42.0%
• C)47.8%
• D)none of the above

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Definitions:

Variables

Elements, features, or factors that can be changed and measured in an experiment to determine their effects.

Main Effect

In analysis of variance, when a factor or an independent variable has a significant effect upon the outcome variable.

ANOVA

Short for Analysis of Variance, a set of statistical techniques used to compare the means of three or more samples.

Factor

An element that contributes to a particular result or situation, often used as a variable in experiments and statistical analysis.