An Adequate Theory of Class Stratification Must Specify a Small

question 25

Multiple Choice

An adequate theory of class stratification must specify a small number of distinct classes because the larger the number of classes specified by the theory:

• A)the more complicated and less useful the explanation
• B)the greater the sampling problems
• C)the more the bias
• D)the less it will capture class differences
• E)none of these choices

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Definitions:

Internal Rate

Often referred to as Internal Rate of Return (IRR), it is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Profitability Index

A financial tool used to determine the desirability of an investment by dividing the present value of future cash flows by the initial investment cost.

Internal Rate of Return

A metric used in capital budgeting to estimate the profitability of potential investments.

Firm's Cost

The total expenses incurred by a business in the process of producing and selling its goods or services, including both fixed and variable costs.