List the Two Criteria to Be Considered Relevant to Decision

question 17

Essay

List the two criteria to be considered relevant to decision making.Explain the difference between sunk cost and opportunity cost and indicate whether they can be considered relevant.

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Definitions:

Continuity Correction

A correction used in approximating a discrete distribution with a continuous one, especially in hypothesis testing with binomial distributions.

Normal Probability Distribution

A bell-shaped curve that represents the distribution of many types of naturally occurring data and is defined by its mean and standard deviation.

Discrete Probability Distributions

Probability distributions that characterize the outcomes of experiments with discrete outcomes, specifying the probability of each outcome.

Binomial Probabilities

The probabilities of obtaining a given number of successes in a fixed number of binary trials.