The Null Hypothesis

question 55

Multiple Choice

The null hypothesis

• A) is used because it is a very precise statement.
• B) is rejected when there is a high probability that the obtained results are due to random error.
• C) does not allow us to know the probability of the outcome of the study occurring.
• D) is statistically significant if it can be accepted.

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Definitions:

Residual Income

The amount of income that exceeds the minimum rate of return expected on a project or investment.

Required Rate Of Return

The minimum annual percentage return an investor expects to achieve by investing in a particular asset or project.

Net Operating Income

A measure of a company's profitability, calculated as the difference between total revenue and operating expenses, excluding taxes and interest.

Average Operating Assets

The average value of the assets used in the operations of a business over a specific period.