Glossary of Terms

absolute value of a number

its distance from [latex]0[/latex] on the number line

adjusted gross income

commonly referred to as AGI, the total income earned by an individual or household after certain deductions have been subtracted from their gross income

amortization

paying off a debt (often from a loan or mortgage) over time through regular payments

amortization table

a table that provides the details of the periodic payments for a loan where the payments are applied to both the principal and the interest

annual percentage rate

APR is for interest paid by consumers on loans

annual percentage yield

APY is for interest paid to consumers on savings

angle

formed when two lines, line segments, or rays meet at a common endpoint called the vertex

algebraic expression

a mathematical phrase or combination of numbers, variables, and arithmetic operations such as addition, subtraction, multiplication, and division

asset

something that a person or a business owns and has value

asymmetrical proportion

involves different elements that balance each other out, without being identical

base system

a structure within which we count

basic counting rule

the total number of available choices is [latex]m \cdot n[/latex] where there are [latex]m[/latex] items in the first category and [latex]n[/latex] items in the second category

blind study

one in which the participant does not know whether or not they are receiving the treatment or a placebo

block

a group of subjects that are similar

blocking

the grouping together of homogeneous (similar) experimental units followed by the random assignment of the experimental units within each group to a treatment

bonds

investments where one lend money to an issuer like a corporation or government in exchange for regular interest payments and the return of the principal at bond maturity

Boolean logic

combines multiple statements that are either true or false into an expression that is either true or false

budget

a specific financial plan for a specified time, consisting of three elements: income, saving and investing, and expenses

capacity

the amount of liquid (or other pourable substance) that an object can hold when it’s full

cardinality

number of elements in a set

census

a survey of an entire population

certain event

probability of [latex]1[/latex]

certificates of deposit (CDs)

a safe investment option where one lends money to a financial institution for a fixed term, and in return, receive predetermined interest

chart

a structured presentation of data

circumference

the distance around a circle

cluster sampling

where the population is divided into subgroups (clusters) and a set of subgroups are selected to be in the sample

combination

a selection of objects from a set without regard to the order in which they are selected

complement of a set

contains everything that is not in the universal set [latex]A[/latex]

complement of an event

the event “[latex]E[/latex] doesn’t happen”

complex number

[latex]z = a + b i[/latex]

complex plane

where the horizontal axis is the real axis and the vertical axis is the imaginary axis

compounding

the process where the interest earned on an investment or the interest charged on a loan is added to the principal amount, so that interest can be earned or charged on a larger amount over time

compound event

a combination of two or more simple events

conditional probability

events that are dependent on each other

confounding

when there are two potential variables that could have caused the outcome and it is not possible to determine which actually caused the result

constant

a fixed value or a number that does not change in a particular context

control group

group that does not receive the treatment of interest or the placebo

convenience sampling

the practice of samples chosen by selecting whoever is convenient

counting numbers

start with [latex]1[/latex] and continue

credit report

a document that contains information about a person’s credit history, including their credit accounts, payment history, outstanding balances, and public records such as bankruptcies or foreclosures

credit score

a three-digit number that represents your creditworthiness that is calculated based on your credit history, which includes information about your past and current credit accounts, payment history, credit utilization, length of credit history, and new credit inquiries

decimals

represent fractions or parts of a whole, based on powers of ten, using a point known as a decimal point

deductions

specific expenses, contributions, or allowances that individuals can subtract from their total income, thereby reducing the amount of income that is subject to taxation

diameter

a line segment that passes through a circle’s center connecting two points on the circle

difference of two sets

the list of all the elements that are in one set but not present in the other

dimensional analysis

a method used to convert from one unit to another

double-blind study

one in which those interacting with the participants don’t know who is in the treatment group and who is in the control group

down payment

a sum of money paid upfront by a buyer as a partial payment towards the total cost of a purchase

employee stock ownership plans (ESOPs)

a type of retirement plan in which the company contributes its stock to the plan for the benefit of the company’s employees

equation

a mathematical statement that shows the equality of two expressions, typically separated by an equal sign

equivalent decimals

two decimals that convert to equivalent fractions

escrow account

a type of account that one’s mortgage lender sets up on your behalf when you close on your home

event

any particular outcome or group of outcomes

Exchange-Traded Funds (ETFs)

similar to mutual funds, but they’re traded on stock exchanges, much like individual stocks

exemptions

reduces the taxable income of individuals or households

existential quantifiers

states that a set contains at least one element

expected value

the average gain or loss of an event if the procedure is repeated many times

experiment

a study in which the effects of a treatment are measured

experimental group

group that receives the treatment of interest

experimental unit

single object or individual to be measured in the experiment

factor of interest

the explanatory variable (independent variable), which is what we suspect has an effect on the response variable

Fibonacci sequence

a series of numbers in which each number is the sum of the two preceding ones

first quartile

the median of the values that lie below the median for the whole data set

fixed expenses

regular expenses that remain the same every month and are required for maintaining a certain standard of living

formula

a mathematical expression that represents a relationship or a rule between variables or quantities

generator

an arranged collection of scaled copies of the initiator

golden rectangle

a rectangle in which the ratio of the length to the width is the golden ratio

graph

a way of presenting numerical data into visual form, making trends and patterns easier to spot

gross income

the total amount of income or earnings a person receives before any deductions or taxes are taken out

gross pay

the larger paycheck amount that is listed on your pay stub prior to deductions for taxes

hierarchical proportion

involves elements sized according to their importance or rank

Hindu-Arabic system

a base-ten system composed of the ten symbols {[latex]0[/latex],[latex]1[/latex],[latex]2[/latex],[latex]3[/latex],[latex]4[/latex],[latex]5[/latex],[latex]6[/latex],[latex]7[/latex],[latex]8[/latex],[latex]9[/latex]}

horizon line

a horizontal line that runs across the paper or canvas to represent the viewer’s eye level and delineate the sky from the ground

imaginary number

[latex]i=\sqrt{-1}[/latex]

implication

a logical conditional sentence stating that the antecedent implies the consequence

impossible event

a probability of [latex]0[/latex]

individual retirement account (IRA)

a type of savings account that is designed to help one save for retirement with tax-free growth or on a tax-deferred basis

initiator

a starting shape

installment loan

a type of loan that is repaid in regular, predetermined payments over a specific period of time

integers

counting numbers, their opposites, and zero

intersection of two sets

contains only the elements that are in both sets

landlord

the person or company that owns property that is rented

lease

a contract between a renter and a landlord

left skewed

a cluster of data on the right with a tail of data tapering off to the left

length

the distance from one end of an object to the other end or from one object to another

liability

something that a person or a business owes to someone else, typically in the form of debt or a financial obligation

line

an infinite collection of points extending infinitely in both directions

line segment

a finite portion of a line with two endpoints

loaded questions

when the question wording influences the responses

logical argument

a claim that a set of premises support a conclusion

logical inference

the process of deriving new knowledge or conclusions based on existing knowledge or premises

manufacturer’s suggested retail price (MSRP)

the negotiated price you arrive at with a car dealership

mean

the mean of a set of [latex]n[/latex] numbers is the arithmetic average of the numbers

measure of an angle

a numerical value that represents the amount of rotation or separation between two lines or line segments

medianthe middle value, half the data values are less than or equal to the median and half the data values are greater than or equal to the median

metric system

a base [latex]10[/latex] system that uses the base units meter, liter, and gram to measure length, liquid volume, and mass

mode

the number with the highest frequency

mortgage

a type of loan that individuals or businesses take out to purchase real estate

mutual funds

investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities

net pay

the larger paycheck amount that is listed on your pay stub prior to deductions for taxes

net worth

the total measure of one’s wealth, calculated by subtracting what one owes (liabilities) from what one owns (assets)

non-response bias

when people refusing to participate in the study can influence the validity of the outcome

observational study

a study based on observations or measurements

observational units

the group of individuals, animals, or objects who are being measured or surveyed in a study

one-point perspective

where all lines converge to a single point on the horizon

one to one correspondence

when items that are being counted are uniquely linked with some counting tool

opposite of a number

the number that is the same distance from zero on the number line but on the opposite side of zero

outcome

result of an experiment

outstanding balance

the total amount of money that one currently owes on their credit card account

parallel lines

lines that lie in the same plane and move in the same direction, but never intersect

parameter

a value (average, percentage, etc.) calculated using all the data from a population

payout annuity

allows an individual to receive regular payments, usually on a monthly or yearly basis, for a predetermined period of time

perceived lack of anonymity

when the responder fears giving an honest answer might negatively affect them

permutation

an arrangement of a set of objects in a particular order. In permutations, the order in which the objects are arranged is important

perpendicular lines

two lines that intersect at a [latex]90^\circ[/latex] angle

perspective

a drawing technique that portrays depth and volume on a flat surface

placebo

a dummy treatment given to control for the placebo effect

placebo effect

when the effectiveness of a treatment is influenced by the patient’s perception of how effective they think the treatment will be, so a result might be seen even if the treatment is ineffectual

plane

a two-dimensional surface with infinite length and width, and no thickness

point

a location in space with no length, width, or height

population

the group the collected data is intended to describe

principal

the amount of money that is borrowed or invested

profit-sharing plan

employers share a portion of company profits with employees by contributing to their retirement savings

proper subset

a subset that is not identical to the original set as it contains fewer elements

proportion

an equation showing the equivalence of two rates or ratios

proportion equation

an equation showing the equivalence of two rates or ratios

prospectus

a pamphlet or brochure that provides information about the mutual fund

qualitative data

the result of categorizing or describing attributes of a population

quantitative data

the result of counting or measuring attributes of a population

quota sampling

where samples are collected in each subgroup until the desired quota is met

radius

a line segment from the center to any point on the circle

random sample

where each member of the population has an equal probability of being chosen

rate

a specific kind of ratio in which two measurements with different units are related to each other

ratio

a comparison between two quantities or measures

ray

a part of a line that starts at an endpoint and extends infinitely in one direction

recursive relationship

a formula which relates the next value, [latex]{{z}_{n+1}}[/latex], in a sequence to the previous value, [latex]{{z}_{n}}[/latex], with an initial value of [latex]{{z}_{0}}[/latex]

recursive sequence

the sequence of values from a recursive relationship

reflection symmetry

when one half of an image, shape or design is the mirror image of the other half

response bias

when the responder gives inaccurate responses for any reason

response factor

the dependent variable, which we suspect is affected by the factor of interest

right skewed

a cluster of data on the left with a tail of data tapering off to the right

Roman numerals

a counting system where numbers in the system are represented by combinations of letters from the Latin alphabet

rotation symmetry

when a design or image can be rotated around a central point and still appear the same

Roth IRA

contributions are made with post-tax income, meaning you pay taxes now rather than in retirement

Rule of Thirds

an image can be divided into nine equal parts by two equally spaced horizontal lines and two equally spaced vertical lines

sample

a smaller subset of the entire population, ideally one that is fairly representative of the whole population

sample space

the set of all possible simple events

sampling bias

when a sample is collected from a population and some members of the population are not as likely to be chosen as others

savings annuity

allows an individual to save money and earn interest on a regular basis, typically over a long period of time

scientific notation

a way of writing numbers that are very large or very small in a compact and convenient form

security deposit

a sum of money that the landlord holds until the renter leaves the rental property

self-interest study

bias that can occur when the researchers have an interest in the outcome

self-similar

when a shape looks essentially the same from a distance as it does closer up

set

collection of distinct objects, or elements

simple event

an event that cannot be broken down further

simple interest

the interest that is calculated only on the principal amount

simple random sample

where every member of the population and any group of members has an equal probability of being chosen

statement balance

the amount of money that one owes on their credit card at the end of a billing cycle

statistic

a value (average, percentage, etc.) calculated using the data from a sample

stocks

investments that grant ownership shares in a corporation, potentially enabling investors to share in a company’s success through increases in the stock’s price and dividends

stratified sampling

where random samples are taken from each subgroup (or strata) with sample sizes proportional to the size of the subgroup in the population.

subset

set that contains only elements from the set [latex]A[/latex], but may not contain all the elements of [latex]A[/latex]

surface area

a square measure of the total area of all the sides

symmetric

a cluster of data where the left and right sides of the distribution closely mirror each other

symmetrical proportion

when elements are mirrored on either side of an axis

symmetry

a sense of harmonious and aesthetically pleasing proportionality and balance

systematic sampling

every [latex]n[/latex]^th member of the population is selected to be in the sample

table

organize data in a clear and concise manner

tax credits

direct reductions in the amount of tax liability owed to the government

taxable income

the portion of an individual’s income that is subject to taxation

the quipu

a collection of cords with knots in them used as a permanent recording of quantities or computations

third quartile

the median of the values that lie above the median for the whole data set

three-point perspective

used when you want to create a bird’s-eye view or a worm’s-eye view

traditional IRA

contributions are often tax-deductible, depending on your income, filing status, and whether you or your spouse have a retirement plan at work

translation symmetry

when an image or design being repeated in a straight line

transversal

a line that intersects two or more other parallel lines creating eight angles, including alternate interior angles, alternate exterior angles, corresponding angles, vertical angles, and supplementary angles

truth table

a table showing what the resulting truth value of a complex statement is for all the possible truth values for the simple statements

two-point perspective

where the object is viewed at an angle rather than from the front

undercoverage

occurs when some groups of the population are left out of the sampling process

union of two sets

contains all the elements contained in either set (or both sets)

unit rate

a rate with a denominator of one

universal set

a set that contains all elements of interest

universal quantifiers

states that an entire set of things share a characteristic

vanishing points

points located on the horizon line where parallel lines appear to converge in a perspective drawing

variable

a symbol that represents a value or quantity that can change or vary in a given situation or context

variables

the characteristics of the observational units in a study

variable expenses

expenses that can fluctuate from month to month or are discretionary in nature

vertical angles

a pair of opposite angles that are formed when two lines intersect

viewpoint

the position from which the artist observes or envisions their subject

volume

a cubic measure of the amount of space inside an object

voluntary response bias

the sampling bias that often occurs when the sample is volunteers

voluntary response sampling

allowing the sample to volunteer

weight

how heavy or light an object is

whole numbers

counting numbers and zero

[latex]5[/latex]-number summary

Minimum, [latex]Q1[/latex], Median, [latex]Q3[/latex], Maximum