If N = 24 and S = 1

question 72

Multiple Choice

If n = 24 and s = 1.56,what is the variance?

• A)2.43
• B)1.25
• C)0.06
• D)0.0065

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Definitions:

Compounded Continuously

Compounded continuously refers to the mathematical limit where the number of compounding periods per year reaches infinity, leading to the exponential growth of an investment or loan.

Compounded Quarterly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods four times a year.

Annual Percentage Rate

A measure that represents the actual yearly cost of funds over the term of a loan, including any fees or additional costs associated with the transaction.

Overdraft Fee

A charge imposed by a bank when a transaction exceeds the account's available balance, resulting in a negative balance.