A Standard Aptitude Test Is Given to Several Randomly Selected $$\text { Mathematics } \begin{array} { l l l l l l l l l } 347 & 440 & 327 & 456 & 427 & 349 & 377 & 398 & 425\end{array}$$

question 120

Essay

A standard aptitude test is given to several randomly selected programmers, and the scores are
given below for the mathematics and verbal portions of the test. Use the sign test to test the
claim that programmers do better on the mathematics portion of the test. Use a 0.05 level of
significance. $$\text { Mathematics } \begin{array} { l l l l l l l l l } 347 & 440 & 327 & 456 & 427 & 349 & 377 & 398 & 425\end{array}$$$$\text { verbal } \begin{array} { l l l l l l l l l } 285&378&243&371&340&271&294&322&385&\end{array}$$

Understand how the internal rate of return (IRR) functions as a decision criterion in investment projects.

Define and calculate the payback period for an investment.

Distinguish between after-tax and pre-tax cash flows in project evaluation.

Understand the principles and benefits of just-in-time (JIT) systems.

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Definitions:

Indirect Method

A financial reporting approach where increases and decreases in inventory, accounts payable, and accounts receivable are reflected in cash from operating activities.

Operating Activities

Activities related to the day-to-day functioning of a business that are reflected in its cash flow from operations.

Net Income

The company's net income following the deduction of all costs and taxes from its total revenue.

Investing Activities

Transactions involving the acquisition or sale of long-term assets and investments, reflected in a company’s cash flow statement.