Chapter 2 of the Text Discusses Tillie the Rainmaker,a Woman

question 169

Multiple Choice

Chapter 2 of the text discusses Tillie the Rainmaker,a woman who believes she has the power to cause rain in drought-stricken areas.According to your text,this belief was probably caused by

• A) a lack of random assignment.
• B) a tendency to infer causality from correlational events.
• C) the lack of precise operational definitions.
• D) a lack of random selection.
• E) such behaviours becoming a self-fulfilling prophecy.

---

Definitions:

Present Value

The present worth of a future amount of money or series of cash inflows, calculated using a given rate of return.

Annual Net Cash Flows

Annual net cash flows represent the amount of cash a company generates or loses within a year from its operating, investing, and financing activities.

Required Return

The minimum amount of profit or gain an investor expects to achieve from an investment to make it worthwhile.

Net Present Value Method

A financial modeling technique that evaluates the profitability of an investment by discounting future cash flows to their present value and subtracting the initial investment.