The Average Age in a Sample of 90 Students at City

question 72

Multiple Choice

The average age in a sample of 90 students at City College is 20. As a result of this sample, it can be concluded that the average age of all the students at City College

• A)must be more than 20, since the population is always larger than the sample
• B)must be less than 20, since the sample is only a part of the population
• C)could not be 20
• D)could be larger, smaller, or equal to 20

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Definitions:

Market Interest Rate

The prevailing rate of interest determined by supply and demand in the money market.

Par

Typically refers to a face value of a bond or stock that is set at issuance, or the stated value of a currency.

Principal Amount

The original sum of money borrowed in a loan, or invested, on which interest is calculated.

Maturity

Maturity is the date on which the principal amount of a bond, loan, or other financial instrument is to be repaid in full to the investor or lender.