Answer:
The common problem i encounter mostly is the statistical modelling problem.
In this scenario we choose best combination of independent variables for the hypothesis testing. the independent variable shows the significant effect on dependent variable so we keep it in modelling.
My null hypothesis would be that there is no significant effect of independent variable on dependent variable. for my alternative hypothesis there exist is significant effect of independent variable on dependent variable.
Explanation:
Solution
The common problem I face daily is the statistical modelling problem which is the selection of relevant independent variable for prediction modelling.
In this example to select the best combination of independent variables we use hypothesis testing. if the independent variable has significant effect on dependent variable then the independent variable shows the significant effect on dependent variable so we keep it in modelling. In this way the model gets improved.
Since there are always two variables or two categories. hence it has a two sample test.
The Hypothesis can be shown below:
Null hypothesis:
H0:There is no significant effect of independent variable on dependent variable.
Alternative hypothesis:
Ha: There is significant effect of independent variable on dependent variable.
The answer is $8,030
Explanation:
Present Value (PV) = $5,000
Future Value(FV) = ?
Interest rate(r) = 7 percent
Number of years (N) = 7 years
The formula for future value is:
FV = PV(1+ r)^n
= $5,000(1+0.07)^7
$5,000(1.07)^7
$5,000 x 1.605781476
=$8,028.91
Approximately $8,030
Alternatively, we can use a Financial calculator:
N= 7; I/Y= 7, PV= -5,000 CPT FV= $8,028.91
Approximately $8,030
The answer to this question is D
Answer:
Indication of correct terms:
a. The reward a saver expects on loaned funds: 3. Interest rate
b. The cost a borrower pays for loaned funds: 3. Interest rate
c. The -difference between the real interest rate and the nominal interest rate: 1. Inflation rate
d. The percentage of disposable income that is kept as personal savings: 2. Saving rate
e. The term that indicates most people need to be incentivized to save: 4.Time preference
f. The result consumption exceeding income over a particular period: 5. Dissaving
Explanation:
1. Inflation rate is the ratio of the change in the prices of goods when compared with an indexed figure.
2. Saving rate is the ratio of savings kept behind from disposable income earned. It shows the ratio of income not consumed when earned.
3. Interest rate is the ratio of the amount that is saved or loaned out that people would receive in order to incentivize them to save or lend and prefer the same amount today and in future.
4. Time preference is a term that shows that people value an amount of money today more than they value the same amount received in future. So, they would rather spend that amount today than spending it tomorrow.
5. Dissaving is spending more than income and even tapping into or consuming from the savings account.
1,244 but ima follow so 1,245