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An investment center manager is considering three possible investments. The company's required return is 10%. The required asset investment controllable margins and the ROIs of each investment are as follows: The investment center is currently generating an ROI of 23% based on $1200000 in operating assets and a controllable margin of $276000.
Instructions
If the manager can select only one project determine which one is the best choice to increase the investment center's ROI. Compute how much the investment center's ROI will be if the manager selects your recommendation.
Probability
The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.
Spurious Relationships
An apparent but false relationship between two variables that is actually caused by a third variable.
Selection Bias
A distortion in the analysis resulting from the method of collection of data, where the sample is not representative of the population being studied.
Experimental Groups
Groups in an experiment that receive the treatment or intervention being tested.
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