When Scores Are "Bunched Up" in the Center of a Distribution,the

question 37

Multiple Choice

When scores are "bunched up" in the center of a distribution,the

• A) mean will be relatively low.
• B) standard deviation will be relatively low.
• C) correlation coefficient will be a negative number.
• D) standard deviation will be relatively high.

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Definitions:

Initial Outflow

The initial cash expenditure required to undertake an investment or project.

Average Accounting Return

A measure of investment profitability calculated as the average annual net earnings of a project divided by the average investment in the project.

Straight-Line Method

An accounting method for allocating the cost of an asset evenly over its useful life.

Cost of Capital

The obligatory profit percentage a corporation needs to achieve on its investments to keep its market share and attract investors.