The Principle of Aggregation Holds That Random Errors Often Become

question 53

True/False

The principle of aggregation holds that random errors often become magnified when averaged together.

---

Definitions:

Compounded

The process by which interest is earned on both the initial principal and the interest that has been added to it, thus "compounding" the amount.

Monthly

Occurring or done once a month.

Compounded Annually

Interest calculation method where interest is added to the principal once a year, allowing the total sum to grow at an annual rate.

Accumulate Interest

The process by which earned interest is added to the principal, allowing future interest calculations to be based on the increased balance.