When Would You NOT Use a Standardized Measure of Effect

question 39

Multiple Choice

When would you NOT use a standardized measure of effect size?

• A) when the difference in means is itself meaningful
• B) when it is clearer to the reader to talk about a percentage
• C) when some other measure conveys more useful information
• D) all of the above

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Definitions:

Net Present Value

A financial metric that calculates the value of a series of cash flows by discounting them back to the present day, used in capital budgeting to assess the profitability of an investment.

Compound Interest

Interest that is computed not only on the original amount deposited or borrowed but also on the interest that has been added to the principal over past periods.

Capital Investment

Funds invested in a firm or enterprise for the purpose of furthering its business objectives, such as purchasing long-term assets.

Estimated Life

The expected period over which an asset is useful to the owning entity and can generate revenue, used for calculating depreciation.