If P-Value of a Statistical Test Is 0

question 31

Multiple Choice

If p-value of a statistical test is 0.09 and a 95% confidence interval, you

• A) should reject the null hypothesis (i.e., significant result).
• B) should fail to reject the null hypothesis (i.e., not significant result).
• C) accept the alternate hypothesis.
• D) have insufficient evidence to either reject or fail to reject the null hypothesis.

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Definitions:

NPV

The calculation of the current value of all future cash flows generated by a project, after accounting for the initial capital expenditure.

IRR

Internal Rate of Return; a metric used in capital budgeting to estimate the profitability of potential investments.

Probability Distributions

A statistical function that describes all the possible values and likelihoods that a random variable can take within a given range.

Portfolio Theory

A body of thought aimed at forming investment portfolios that minimize risk for a given return.