According to the Concept of ______,Two Variables Are Associated When

question 28

Multiple Choice

According to the concept of ______,two variables are associated when information about one can help us improve our prediction of the other.

• A)measure of association
• B)proportional reduction of error
• C)Pearson's correlation coefficient
• D)Cramer's V

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Definitions:

Sensitivity Analysis

A technique used in financial modeling to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Residual Value

The estimated value of a fixed asset at the end of its useful life, important for calculating depreciation.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Cash Payback Period

The duration it takes for a project or investment to repay its initial cost from the cash inflows it generates.