Use Estimation to Select the Best Response

question 4

Multiple Choice

Use estimation to select the best response. Do not calculate. Assume that interest rates are close to 10%. If you purchase a new car for $11,000, and finance it for 3 years, then the amount of interest you would expect to pay is about ______.

• A) $3,300
• B) $330
• C) $110
• D) $33,000
• E) $11,000

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Definitions:

Degrees of Freedom

A concept in statistics that refers to the number of values in a calculation that are free to vary without violating the constraints of the calculation.

Levels Minus One

In analysis of variance (ANOVA), it refers to the number of levels in a factor minus one, which dictates the number of comparisons that can be made.

Interaction Effect

Occurs in an analysis when the effect of one independent variable on a dependent variable differs across levels of another independent variable.

Mean Square

The average of the squares of the deviations or differences from the mean, often used in variance and regression analysis.