If Management Judges One Project in a Mutually Inclusive Set

question 120

Multiple Choice

If management judges one project in a mutually inclusive set to be acceptable for investment,

• A)all the other projects in the set are rejected.
• B)only one other project in the set can be accepted.
• C)all other projects in the set are also accepted.
• D)only one project in the set will be rejected.

---

Definitions:

Goodness-of-Fit Test

A statistical test used to compare an observed distribution to an expected distribution, to check how well the observed data fits with a specific distribution.

Probability Distribution

A mathematical description that assigns probabilities to different outcomes of a random variable.

Chi-Square Distribution

The Chi-Square Distribution is a statistical distribution used for hypothesis testing and is derived from the sum of the squares of a set of normally distributed random variables.

Degrees of Freedom

The number of values in the final calculation of a statistic that are free to vary.