When We Consider Categorical Variables, If the Categories Have No

question 1

Multiple Choice

When we consider categorical variables, if the categories have no order, we term them _____, whereas if the categories have an order, we term them _____.

• A) ordinal : nominal
• B) nominal : ordinal
• C) random : sequential
• D) sequential : random

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Definitions:

Salvage Value

The estimated residual value of an asset after its useful life has ended and it can no longer be used for productive purposes.

Net Cash Inflows

The difference between all cash receipts and all cash payments within a particular period, reflecting the net increase in cash available.

Straight-Line

A depreciation method that allocates an equal amount of the depreciable cost of an asset to each accounting period of its useful life.

Annual Rate of Return

The percentage of profit or loss made from an investment in a year, taking into account both capital gains and interest or dividends received.