The Integration of Data from Statistical Procedures,empirical Methods,and Formal Rules

question 100

Multiple Choice

The integration of data from statistical procedures,empirical methods,and formal rules to formulate descriptions and make predictions is referred to as

• A) actuarial prediction.
• B) clinical prediction.
• C) empirical prediction.
• D) formal prediction.

---

Definitions:

Required Return

The minimum expected return on an investment necessary to compensate for the risk taken by the investor, including the time value of money and inflation.

Payback

A method of investment appraisal that calculates the time needed for an investment to generate cash flows sufficient to recover the initial outlay.

Four Year Payback

A capital budgeting method that calculates the time required to recoup the initial investment in a project, specifically over a period of four years.