A Random Sample of 30 Executives from Companies with Assets

question 5

Multiple Choice

A random sample of 30 executives from companies with assets over $1 million was selected and
Asked for their annual income and level of education. The ANOVA comparing the average income
Among three levels of education rejected the null hypothesis. The Mean Square Error (MSE) was
243) 7. The following table summarized the results:
When comparing the mean salaries to test for differences between treatment means, the t statistic
Is based on:

• A) the treatment degrees of freedom.
• B) the total degrees of freedom.
• C) the error degrees of freedom.
• D) the ratio of treatment and error degrees of freedom.

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Definitions:

Discount Rate

This rate is applied in discounted cash flow analysis to derive the current value of cash flows expected to be received in the future.

Project

A short-term effort made to develop a distinct product, service, or outcome.

Required Return

The minimum rate of return needed on an investment, determined by the investor’s risk tolerance and the investment’s risk.

NPV

Net Present Value; a calculation used to determine the present value of an investment by discounting its future cash flows.