Five Years Ago, Brian Had Invested $14,850 in a Growth

question 32

Multiple Choice

Five years ago, Brian had invested $14,850 in a growth fund. The investment is worth $22,000 today. If the interest was compounded annually, what is the annual rate of return earned on the investment?

• A) 7.25%
• B) 8.18%
• C) 9.52%
• D) 10.75%
• E) 11.66%

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Definitions:

Type II Error

The error made by failing to reject a false null hypothesis, also known as a "false negative."

Type I Error

The mistaken dismissal of an accurate null hypothesis, frequently referred to as a false positive.

Effect Size

A quantitative measure of the strength of a phenomenon, used to indicate the magnitude of a difference or relationship within the context of a statistical analysis.

T-Tests

Statistical tests used to compare the means of two groups to see if there is a significant difference between them.