Applying Statistical Inference: an Example If Mark Chose a

question 58

Multiple Choice

Applying Statistical Inference: An Example If Mark chose a .01 significance level for his experiment and then found that the results could have occurred by chance more than 1 out of 100 times, he should

• A)accept the alternative hypothesis.
• B)accept the null hypothesis.
• C)reject the null hypothesis.
• D)report a trend towards significance.

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Definitions:

IRR

The Internal Rate of Return is the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Mutually Exclusive

situations or events that cannot occur at the same time.

Internal Rate of Return

The Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.

Required Rate

The minimum return an investor expects to achieve by investing in a project, often used as a benchmark to evaluate financial investments.