Discounted at 10%, $1,000 Received at the End of Each

question 33

True/False

Discounted at 10%, $1,000 received at the end of each year for three years is worth less than $2,700 received today.
PV_A = A × PV_IFA (App. D: 3 periods, 10%)
= $1,000 × 2.487 = $2,487

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Definitions:

P-value

The probability of obtaining test results at least as extreme as the ones observed during the test, assuming that the null hypothesis is true.

Fertilizer Effectiveness

The impact of fertilizer on promoting plant growth, measured by the increase in biomass, yield, or health of the plants.

Wilcoxon Rank-sum Test

A nonparametric test used to assess whether there is a significant difference between two independent samples based on median comparison.

Kruskal-Wallis Test

A nonparametric statistical test used to compare three or more groups or samples that do not meet the assumption of normality.