Write the factors of the three scenarios a) Finding annuities given present value; b) Finding annuities given future value; c) Finding present value given annuities.
Write the factors of the three scenarios
a) Finding annuities given present value;
b) Finding annuities given future value;
c) Finding present value given annuities.
Factors:
The explanatory variables in the experiment are termed as factors. The variable that can be changed or controlled in the experiment is termed as explanatory variable. The change in the response variable is explained by explanatory variable.
a)
In this scenario annuities is to be found using present value. The variable ‘present value’ is controlled in the experiment for predicting variable ‘annuities ’ indicating that ‘present value’ is explanatory variable or factor.
Thus, the factor in the scenario is present value.
b)
In this scenario annuities is to be found using future value. The variable ‘future value’ is controlled in the experiment for predicting variable ‘annuities ’ indicating that ‘future value’ is explanatory variable or factor.
Thus, the factor in the scenario is future value.
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