Steve Coleman Has Just Won the State Lottery and Has

question 131

Multiple Choice

Steve Coleman has just won the state lottery and has the following three payout options for after-tax prize money: 1.$166,000 per year at the end of each of the next six years
2.$306,000 (lump sum) now
3.$518,000 (lump sum) six years from now
The annual discount rate is 9%.Compute the present value of the second option.(Round to nearest whole dollar. )
Present value of $1:
$$\begin{array} { | l | r | r | r | } \hline & 8 \% & 9 \% & 10 \% \\\hline 1 & 0.926 & 0.917 & 0.909 \\\hline 2 & 0.857 & 0.842 & 0.826 \\\hline 3 & 0.794 & 0.772 & 0.751 \\\hline 4 & 0.735 & 0.708 & 0.683 \\\hline 5 & 0.681 & 0.650 & 0.621 \\\hline 6 & 0.630 & 0.596 & 0.564 \\\hline 7 & 0.583 & 0.547 & 0.513 \\\hline\end{array}$$

• A)$684,000
• B)$103,600
• C)$414,400
• D)$306,000

Identify the types of correlation (positive, negative) and their implications in real-life contexts.

Familiarize oneself with legal and ethical considerations in testing, including rights to access educational records and the implications of various acts like FERPA and ADA.

Recognize the role of expert judgment in determining test validity.

Understand the importance of non-correlation between different constructs to maintain test integrity.