Given that Lucky won $1000000 and has an option of receiving $50000 p.a for 30 years, the total amount received after 30 years in case he goes for option 2 will be:
amount=(yearly payment)+(number of years)
=(50000)×(30)
=$1,500,000
This implies that the second option is best choice. Given the information, we shall conclude that the best thing to do is to calculate the present value of the annuity payments.
The answer is D]
Incomplete question. However, this are the options to select from
I. test statistic
II. p-value
III. critical value
IV. null hypothesis
Answer:
<h3><u>IV</u></h3>
Explanation:
Remember, the region of rejection in statistical analysis simply implies what is that numerical range to which the observed results if different from assumed results would lead to the hypothesis should be discarded.
This hypothesis is called the Null hypothesis, it forms the rejection region of any statistical analysis.
Answer:
A) anchoring bias
Explanation:
Anchoring bias refers to a common mistake of relying heavily on the first information that we get, or in this case, the first information that we look for.
We all tend to suffer from anchoring bias, that is why it is one of the oldest sales techniques. Everyone has seen an ad that states a before price and a discount price. If the difference between the before price and the after price are significant, then we will consider that it is a bargain. Or a salesperson first shows us an expensive product, and then shows us a similar but lower priced product, we tend to believe the second product is cheap.
When most of us look for a job, of course we focus on the salary, since we want to work to earn money. But only focusing on the salary is seeing only half the picture, although the most important half. Other associated benefits or costs are usually not considered, e.g. a high paying job might also require dressing formally or spending a lot of time travelling.
Answer:
The spread between yields on long-term and short-term bonds is positive
Explanation:
When term premiums are positive, the yield curve is considered normal, this means that long-term bonds have a higher yield to maturity than short-term bonds, due to the higher risks associated with long-term bonds.
If long-term bonds have a higher yield to maturity (YTM) than short-term bonds, this means that the spread: the difference between the term premiums of long-term bonds and short-term bonds, will be positive.
For example, if the YTM of a 10 year bond is 8%, and the YTM of a 1 year bond is 4%, the spread of of the term premiums will:
8 - 4 = 4%, a positive spread.
