Use the Table for the Question(s)below

question 2

Multiple Choice

Use the table for the question(s) below.
Consider a project with the following cash flows in $:
-Assume the appropriate discount rate for this project is 15%.The IRR for this project is closest to:

• A)21%.
• B)22%.
• C)15%.
• D)60%.

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Definitions:

Chi-square Test

An analytical procedure employed to find out if a considerable link is present between two categorical factors.

Goodness-of-fit Test

Statistical tests that measure how well observed sample data fits a distribution from a population with a specified distribution.

Categorical Variable

A type of variable that can take on one of a limited, and usually fixed, number of possible values, assigning each individual or observation to a particular group or category.

Degrees of Freedom

The number of independent values or quantities which can vary in the analysis of statistical parameters.