The Ability to Make a Causal Inference Between Two Variables

question 90

Multiple Choice

The ability to make a causal inference between two variables is a function of the ______.

• A)level of measurement of the variables
• B)precision of measurement of the DV
• C)research design
• D)statistical technique used to analyze the data

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, often in the context of investment appraisal or determining the net present value.

Net Present Value

The difference between the present value of cash inflows and outflows over a period, used in capital budgeting to assess profitability of investments.

Working Capital

The difference between a company's current assets and its current liabilities.

Straight-Line Depreciation

A method of calculating the depreciation of an asset, where the asset's cost is evenly spread over its useful life.