A New Sales Person Is Paid a Commission on Each

question 37

Multiple Choice

A new sales person is paid a commission on each sale. This person made $2,000 his first month on the job. From this he concludes that he will make $24,000 during his first year. This is an example of _______.

• A) inferential statistics
• B) nominal data
• C) descriptive statistics
• D) deferential statistics
• E) nonparametric statistics

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Definitions:

Coupon

The interest rate on a bond, typically paid semiannually to the bondholders.

Yield To Maturity

An estimate of the annualized return an investor will receive from a bond, assuming it is held until its maturity date, inclusive of all payments.

Par Value

Par value is the face value of a bond or stock as stated by the issuing company, which may differ from its market value; for stocks, it is often a nominal amount.