Suppose That in One Town,50-Year Old Men Have a Mean

question 59

Multiple Choice

Suppose that in one town,50-year old men have a mean weight of 80 kg with a standard deviation of 7 kg.30-year old men have a mean weight of 71 kg with a standard deviation of 6 kg.How much heavier do you expect a 50-year old man to be than a 30-year old man and what is the standard deviation of this difference?

• A)80 kg,7 kg
• B)9 kg,3.61 kg
• C)151 kg,4.31 kg
• D)9 kg,9.22 kg
• E)9 kg,13 kg

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Definitions:

Perpetuity

An infinite series of equal payments at equal intervals of time.

Present Value

The present-day value of a sum of money to be received in the future or a series of future cash flows, based on a certain return rate.

Cash Flow

A financial measurement that shows the net amount of cash and cash-equivalents being transferred into and out of a business over a specified period.

Annuity

A finite series of equal payments at equal intervals of time. In an ordinary annuity the payments occur at the ends of the time periods. In an annuity due, they occur at the beginnings.