An Advantage of the Payback Method Is Its

question 8

Multiple Choice

An advantage of the payback method is its:

• A) Time value of money considerations.
• B) Application of readily available accounting data.
• C) Cut-off point.
• D) Long-term perspective.
• E) Simplicity.

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Definitions:

Coefficient Of Correlation

A statistical measure that calculates the strength of the relationship between the relative movements of two variables.

R-Square

A statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.

Prediction Interval Estimate

A prediction interval estimate is a range of values that is likely to include the value of a single new observation predicated on the existing data set.

Confidence Interval Estimate

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter at a specified confidence level.