Which Type of Scale Assumes an Arbitrary Zero Point

question 3

Multiple Choice

Which type of scale assumes an arbitrary zero point?

• A) Ratio
• B) Median
• C) Interval
• D) Nominal
• E) Ordinal

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Definitions:

Cash Flows

The total sum of money transfers both incoming and outgoing in a firm, majorly affecting its financial readiness.

Profitability Index (PI)

The present value of an investment’s future cash flows divided by its initial cost; also benefit/cost ratio.

Straight-Line Depreciation

A framework for spreading out the cost of a physical asset across its useful lifespan in identical yearly contributions.

Mutually Exclusive

Mutually exclusive is a statistical term describing two or more events that cannot occur simultaneously, often used in decision making or project selection scenarios.