Which of the Following Is a Disadvantage of Both Residual

question 13

Multiple Choice

Which of the following is a disadvantage of both residual income and ROI?

• A)They are both absolute measures of return.
• B)They both are difficult to calculate.
• C)They both do not discourage myopic behaviour.
• D)All of the above are disadvantages of both ROI and residual income.

---

Definitions:

Test Statistic

A value calculated from sample data used to decide whether to reject the null hypothesis in statistical hypothesis testing.

Average Monthly Cost

The mean expenditure incurred per month over a specified period, often used for budgeting and planning purposes.

Childcare

Provision of care and supervision to children, typically by someone other than the child's parents, often involving educational and recreational activities.

Independent Random Samples

Samples selected from the same population where the selection of one element does not influence or affect the selection of any other element.