Which of the Following Represent Discrete Nominal or Ordinal Variables

question 6

Multiple Choice

Which of the following represent discrete nominal or ordinal variables?

• A) age
• B) race
• C) speed limit
• D) ranks in a police department

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Definitions:

Continuous Compounding

A mathematical approach where interest earnings are immediately reinvested to generate additional earnings continuously.

Stated Rate

The annual interest rate stated on a financial instrument, such as a loan or bond, not adjusting for compounding or fees.

Interest-Only Loan

A loan where the borrower is required to pay only the interest on the principal balance for a set period of time.

Annual Interest

Interest calculated over a 12-month period on the outstanding balance of a loan or deposit, usually compounded annually.