To Determine Whether an Investment Makes Sense a Business Will

question 65

Multiple Choice

To determine whether an investment makes sense a business will compute the net present value and if the result is

• A)negative they will make the investment.
• B)positive they will make the investment.
• C)positive they will not make the investment unless the interest rate rises.
• D)positive they will not make the investment regardless of the change in interest rates.

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Definitions:

Margin of Error

An expression of the amount of random sampling error in a survey's results, indicating a confidence interval within which the true value lies.

σ

Symbol representing the standard deviation of a population in statistics.

Population Mean

The average of a set of values from the entire population, representing the central tendency of the total data set.

Confidence Intervals

Intervals that are calculated from the observed data and provide a range that likely includes the true parameter of the population, expressed at a certain confidence level.