Which of the Following Is True of Euclidean Distances

question 28

Multiple Choice

Which of the following is true of Euclidean distances?

• A) It is used to measure dissimilarity between categorical variable observations.
• B) It is not affected by the scale on which variables are measured.
• C) It increases with the increase in similarity between variable values.
• D) It is susceptible to distortions from outlier measurements.

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Definitions:

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Discount Factor(s)

A numerical factor used to calculate the present value of future cash flows, reflecting how future values are worth less in today's terms.

Salvage Received

The amount of money or value received from selling or disposing of obsolete or excess inventory, equipment, or other assets.

Internal Rate Of Return

A metric used in capital budgeting to estimate the profitability of potential investments.