________ Indicates Not Only the Degree of Association but the Direction

question 71

Multiple Choice

________ indicates not only the degree of association but the direction as well-the sign of the correlation coefficient indicates the direction of the relationship.

• A)Pearson product moment correlation
• B)Kendall rank correlation
• C)Spearman correlation
• D)Rank-Biserial correlation

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Definitions:

Hurdle Rate

The minimum rate of return on a project or investment required by a manager or investor to proceed with the project.

Present Value

The present value of a future amount of money or series of cash flows, using a certain return rate.

Payment Options

The various methods by which a buyer can fulfill a financial obligation to a seller, including cash, credit, and electronic transfers.

Compounding

The process where the value of an investment increases because the interest it earns itself earns interest.