Which of the Following Is a Testable Hypothesis

question 3

Multiple Choice

Which of the following is a testable hypothesis?

• A) Global warming will result in more tsunamis in the next 100 years.
• B) People who claim to have been abducted by aliens have higher scores on a paranoia scale than people in the general population.
• C) A list of meaningful words can be memorized more quickly than a list of nonsense syllables.
• D) Prayer will bring about healing of those stricken with AIDS.

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Definitions:

Required Return

The minimum expected return on an investment needed by an investor, factoring in the risk associated with the investment.

Initial Cash Outflow

Initial cash outflow refers to the amount of money a business or investor must spend upfront to initiate a project, investment, or acquisition.

Cash Inflows

The total amount of money being transferred into a business, typically from operational, investment, and financing activities.

Profitability Index

A calculation used to determine the relative profitability of an investment, defined as the present value of future cash flows divided by the initial investment cost.