The Ability to Make a Causal Inference Between Two Variables

question 119

True/False

The ability to make a causal inference between two variables is a function of the statistical techniques one uses,not the research design used to generate the data that are analyzed by those statistical techniques.

---

Definitions:

Preference

In finance, this term relates to shares or securities that have priority over common shares in the payment of dividends and upon liquidation.

Profitability Index

A calculation that determines the relative profitability of an investment, calculated by dividing the present value of future cash flows by the initial investment cost.

Investment Projects

Initiatives undertaken by businesses or individuals that involve committing resources with the expectation of generating future financial returns.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.