Which of the Following Is True Concerning Independent and Dependent

question 4

Multiple Choice

Which of the following is true concerning independent and dependent variables in classical experiments?

• A)A variable can be an independent in one experiment and dependent in another.
• B)Once a variable is designated as an independent variable in one experiment, it can never be used as a dependent variable in another.
• C)A classical experiment examines the effect of a dependent variable on an independent variable.
• D)An independent variable in a classical experiment is viewed as the effect because it is dependent upon another variable.

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Definitions:

Discount Rate

The rate applied in DCF assessment to compute the present worth of imminent cash flows.

Internal Rate

Short for Internal Rate of Return (IRR), a financial metric used to estimate the profitability of potential investments by calculating the rate of return at which net present value of all cash flows (both positive and negative) from a project equals zero.

Profitability Index

A capital budgeting tool that measures the ratio of the present value of future cash flows from an investment to the investment's initial cost.

Mutually Exclusive

Situations or events that cannot both occur at the same time.