Which One of the Following Is Generally Considered to Be

question 37

Multiple Choice

Which one of the following is generally considered to be the best form of analysis if you have to select a single method to analyze a variety of investment opportunities?

• A)Payback
• B)Profitability index
• C)Accounting rate of return
• D)Internal rate of return
• E)Net present value

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Definitions:

Unbiased Estimator

A statistical estimator whose expected value is equal to the true parameter of the population being studied.

Unbiased Estimator

A statistical estimator that, through repeated sampling, provides results equal to the true parameter of the population.

Variance

A measure of the dispersion or spread of a set of data points, indicating how far each data point lies from the mean.

Consistency

refers to the property of an estimator in which, as the sample size increases, it converges in probability to the parameter it estimates.