If the Null Hypothesis Is Rejected in Hypothesis Testing

question 36

Multiple Choice

If the null hypothesis is rejected in hypothesis testing,

• A) no conclusions can be drawn from the test.
• B) the alternative hypothesis is true.
• C) the data must have been accumulated incorrectly.
• D) the sample size has been too small.

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Definitions:

Net Present Value

A method of valuing a series of future cash flows by discounting them back to their present value using a specified rate of return.

Working Capital

Working Capital is the difference between a company's current assets and current liabilities, indicating short-term financial health.

Discount Rate

This refers to the rate used in discounted cash flow assessments to figure out the current value of cash flows expected in the future.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of investments.