Which One of These Statements Is Correct

question 62

Multiple Choice

Which one of these statements is correct?

• A) A dollar received next year has the same value as a dollar received today.
• B) Risky cash flows are more valuable than certain cash flows.
• C) Smart investment decisions create more value than smart financing decisions.
• D) Corporate governance is irrelevant.

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Definitions:

P-value

A statistical measure indicating the probability of obtaining the observed results, or more extreme results, assuming the null hypothesis is true.

Rejection Region

The range of values in a statistical test for which the null hypothesis is rejected if the test statistic falls within this region.

Critical Value

A point on a statistical distribution representing a threshold at which the null hypothesis is either rejected or not rejected.

One-Tailed Test

A statistical test in which the region of rejection is on only one side of the sampling distribution, used when the research hypothesis is directional.