The Scientific Method of Decision Making

question 23

Multiple Choice

The scientific method of decision making

• A) is systematic and logical.
• B) stems from the recency syndrome.
• C) is an applied form of bounded rationality.
• D) allows the decision maker to be biased.

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Definitions:

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations, calculated as earnings before interest and taxes (EBIT) divided by interest expenses.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected in its income statement.

Tax Rate

The percentage at which an individual or corporation is taxed by the government.

Net Profit Margin Percentage

A financial metric that shows the percentage of revenue that remains as profit after all expenses have been subtracted from total sales.