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Positively Correlated
This term describes two variables that move in the same direction; as one variable increases, the other variable increases as well, and vice versa.
Real Option
An analytical method for valuing flexibility in decision-making, emphasizing the ability to modify plans in response to changing market conditions.
Estimated NPV
Estimated NPV (Net Present Value) is the calculation used to assess the profitability of an investment or project, representing the difference between the present value of cash inflows and outflows.
Certainty Equivalents
The guaranteed amount of money that a person would accept instead of taking a chance on a higher, but uncertain, amount.
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