If We Use Future Value Rather Than Present Value to Decide

question 36

Multiple Choice

If we use future value rather than present value to decide whether to make an investment:

• A)we will make a bad decision,since the future value will always be higher if the discount rate is positive.
• B)we will make a bad decision,since the future value will always be lower if the discount rate is positive.
• C)we will make the same decision using either future value or present value.
• D)There is not enough information given to answer the question.

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Definitions:

3 × 2 ANOVA

A type of factorial analysis of variance that analyses the effects of two independent variables, one with three levels and the other with two, on a dependent variable.

Null Hypotheses

A hypothesis that assumes no significant difference or effect exists between groups or variables being examined.

Factorial ANOVA

A statistical test used to evaluate the effects of two or more categorical independent variables on a single continuous dependent variable.

Weight Loss

The reduction of total body mass due to efforts such as diet, exercise, or surgery.