Why Is It a Good Idea to Randomly Assign People

question 19

Multiple Choice

Why is it a good idea to randomly assign people to the training group and the control group?

• A) it is the easiest way to select equivalent groups
• B) it is the easiest way to measure both pre and post training
• C) it guarantees that training evaluation will be believed by management
• D) it allows us to assume that attitude toward training is positive for all trainees

Understand the concept of the cost of debt and its significance in the overall cost of capital.

Grasp the basics of the Dividend Growth Model (DGM) and its use in estimating the cost of equity.

Identify the appropriate cost of capital for individual projects based on the specific risks and characteristics of the project.

Acknowledge the influence of market dynamics, such as stock market increases, on firms' WACC.

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Definitions:

Poorest Quintile

The segment of the population that falls in the bottom 20% in terms of income distribution.

Income

Income is the money received, especially on a regular basis, for work or through investments.

Classified As Poor

A designation for individuals or households whose income falls below the poverty line, making it difficult to meet basic life needs.

Money Income

The total amount of money earned or received by a person or household before taxes and deductions, from all sources.