All of the Following Are Methods Used to Value an IT

question 2

Multiple Choice

All of the following are methods used to value an IT investment EXCEPT:

• A) Payback analysis
• B) ROI
• C) NPV
• D) CTO
• E) IRR

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Definitions:

Two-tailed Test

A statistical test that considers both directions of a possible effect, testing for the possibility of an effect in two opposite directions.

Z-test

A statistical test used to determine whether two population means are different when the variances are known and the sample size is large.

µ = 15

Represents the mean of a population is equal to 15.

Z-statistic

A measure used in statistics to quantify the deviation of a data point or a group of data points from the mean, expressed in terms of standard deviations.