Which of the Following Will Not Cause an Increase in the Present

question 59

Multiple Choice

Which of the following will not cause an increase in the present value of a sequence of payments?

• A)a reduction in the current interest rate
• B)a reduction in expected future interest rates
• C)an increase in a future expected payment
• D)none of the above

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Definitions:

Sign Test

The Sign Test is a nonparametric test used to evaluate the median of a population, particularly when the sample size is small and the data are not normally distributed.

Matched Pairs

A research design in statistics where pairs of subjects are matched based on certain criteria, and differences within each pair are analyzed.

Test Statistic

A calculated value used in a statistical test to decide whether to support or reject the null hypothesis.

One-sample T Test

A statistical test used to compare the mean of a single sample to a known mean or expected value, to see if there is a significant difference.