In Early 2002, the Inflation Rate Was About 1

question 11

Multiple Choice

In early 2002, the inflation rate was about 1.4%. If you invested in a savings account with an annual interest rate of 4.8%, what was the real growth rate of this investment?

• A) 1.66%
• B) 3.35%
• C) 4.27%
• D) 6.12%

---

Definitions:

Variance

A measure of dispersion indicating how far individual values in a dataset are from the mean.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation indicates that the values tend to be close to the mean.

Sampling Distribution

The probability distribution of a given statistic based on a random sample.

Chi-square Distribution

A probability distribution commonly used in statistical significance tests.