Suppose a Number of Your Friends Have Organized a Company

question 8

Multiple Choice

Suppose a number of your friends have organized a company to develop and sell a new software product.They have asked you to loan them $8,000 to help get the company started,and they have promised to repay your $8,000 plus 10% interest in one year.Of the following,which amount may be described as the return on your investment?

• A)$8,000
• B)$800
• C)$8,800
• D)$7,200

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Definitions:

Ordinal Data

Data that can be categorized or ranked in order but does not quantitatively measure differences between categories.

Normally Distributed Populations

Populations that follow a normal distribution, characterized by a bell-shaped curve.

Z-Test Approximation

A statistical test used to determine if there are significant differences between means with known variance and a large sample size.

Two Independent Samples

A statistical method involving the comparison of two groups of data where the samples are collected independently of one another.