Which Scale of Measurement Provides the Greatest Amount of Information

question 15

Multiple Choice

Which scale of measurement provides the greatest amount of information?

• A) ratio
• B) interval
• C) nominal
• D) ordinal

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Definitions:

Capital Budget

A spending plan for a company's long-term investments in assets and projects, intended to maintain or grow the business.

DCF Analysis

Discounted Cash Flow Analysis, a valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for time value of money.

NPV

Net Present Value is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time for an investment.

Real Option Valuation

A technique in finance that calculates the value of future investment decisions, including the choices and flexibility in business projects.