According to the Marginal-Cost-Marginal-Benefit Rule

question 70

Multiple Choice

According to the marginal-cost-marginal-benefit rule,

• A) only government projects (as opposed to private projects) should be assessed by comparing marginal costs and marginal benefits.
• B) the optimal project size is the one for which MB = MC.
• C) the optimal project size is the one for which MB exceeds MC by the greatest amount.
• D) project managers should attempt to minimize both MB and MC.

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Definitions:

Beta (β)

In statistics, it often represents the probability of committing a Type II error, or in regression, it denotes the slope coefficients representing the change in the dependent variable for a one-unit change in the independent variable.

Hypothesis

A hypothesis is a proposed explanation or assumption for a phenomenon or a relationship between variables that can be tested through research and experimentation.

Null Hypothesis

The null hypothesis is a statement in statistics that suggests no significant effect or relationship exists in the population; it is the hypothesis that a statistical test aims to disprove.

Alternative Hypothesis

In hypothesis testing, the hypothesis that there is a significant difference between specified populations, which is considered if the null hypothesis is rejected.