Janet Plans on Saving $3,000 a Year and Expects to Earn

question 44

Multiple Choice

Janet plans on saving $3,000 a year and expects to earn 8.5%. How much will Janet have at the end of twenty-five years if she earns what she expects?

• A) $219,317.82
• B) $230,702.57
• C) $236,003.38
• D) $244,868.92
• E) $256,063.66

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Definitions:

Stepwise Regression

A method of fitting regression models in which the choice of predictive variables is carried out by an automatic procedure.

F-statistic

A ratio used in statistical analysis to determine the significance of a group of variables in a regression model.

F-to-enter

A criterion used in statistical analysis to decide when a variable should be added to a regression model based on the F-statistic value.

Multiple Regression Analysis

A statistical strategy that employs a selection of explanatory variables to predict the outcome of a variable of interest.