Georgeanne Has Been Employed by SEC Corp

question 20

Essay

Georgeanne has been employed by SEC Corp. for the last 2½ years. Georgeanne participates in SEC's 401(k) plan. During her employment, Georgeanne has contributed $6,000 to her 401(k) account. SEC has contributed $3,000 to Georgeanne's 401(k) account (it matched 50 cents of every dollar contributed). SEC uses a three-year cliff vesting schedule. If Georgeanne were to quit her job with SEC, what would be her vested benefit in her 401(k) account (assume the account balance is $9,000)?

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Definitions:

Matched Pairs

refers to a design in experiments where each case has a unique counterpart for comparison, minimizing variability.

Interval

A range of numbers between two set points, often used in mathematics and statistics to specify subsets of the real number line.

Chi-Squared Distribution

A distribution that represents the distribution of the sum of the squares of k independent standard normal random variables.

P-Value

The chance of encountering test outcomes as significant as or more than what is actually seen, assuming that the null hypothesis holds.