A Scale Whose Numbers Serve Only as Labels or Tags

question 11

True/False

A scale whose numbers serve only as labels or tags for identifying and classifying objects with a strict one-to-one correspondence between the numbers and the objects is called an ordinal scale.

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Definitions:

Discounted Present Value

Discounted present value is a financial calculation that determines the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Financial Attribute

Characteristics or information pertaining to financial entities, transactions, or instruments that can be measured or identified, such as price, yield, risk, or returns.

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.

Risk-Adjusted

A process or methodology that adjusts for the risk involved in a project or investment, allowing for more accurate comparisons or evaluations.