The Following Questions Will Be Based on the Following -The IQ Scores Represent Which Scale of Measurement

question 45

Short Answer

The Following Questions will be based on the following:
A group of 10 college seniors was randomly selected and given a WAIS-III IQ test. The IQs were recorded and then compared with each student's rank in class. The data are as follows: $$\begin{array} { l c c } \text { Student\# } & \text { IQ } & \text { Rank In Class } \\\text { 1. } & 120 & 1 \\\text { 2. } & 125 & 2 \\\text { 3. } & 122 & 3 \\\text { 4. } & 110 & 4 \\\text { 5. } & 95 & 5 \\\text { 6. } & 105 & 6 \\\text { 7. } & 100 & 7 \\8 . & 110 & 8 \\9 . & 100 & 9 \\10 . & 94 & 10\end{array}$$
-The IQ scores represent which scale of measurement?

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Definitions:

Profitability Index

A calculation used to assess the attractiveness of an investment or project, equal to the present value of future cash flows divided by the initial investment cost.

Net Present Value

The difference between the current value of cash inflows and the current value of cash outflows over a period of time, used in capital budgeting to analyze the profitability of an investment.

Required Rate

The minimum yearly earnings percentage necessary to lure individual or corporate investors into a specific project or security.

Payback Period

The timeframe required for an investment to generate cash flows sufficient to recover its initial cost.