Multiplying or Dividing Each Score in a Distribution by the Same

question 21

Multiple Choice

Multiplying or dividing each score in a distribution by the same constant will

• A) cause the mean to change by that constant.
• B) not change the mean at all because each score is multiplied or divided by the same constant.

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Definitions:

Bond Discount Account

An accounting term representing the difference between the face value of a bond and its selling price when sold at less than its face value.

Serial Bonds

Bonds that mature at different intervals over a period of time, allowing the issuer to retire a portion of the bond issue at regular intervals.

Present Value

The immediate value of a future stream of income or lump sums of money, assessed with a specific interest rate in mind.

Nominal Rate

The interest rate stated on a financial instrument, without adjustment for the full effect of compounding or inflation.