If the Accounting Rate of Return Exceeds the Required Accounting

question 152

Multiple Choice

If the accounting rate of return exceeds the required accounting rate of return,

• A)invest in the capital asset.
• B)do not invest in the capital asset.
• C)only invest if the payback period is also greater than the required rate of return.
• D)only invest if the payback period is also less than the required rate of return.

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Definitions:

Rejection Region

The range of values for which the null hypothesis is considered not probable, leading to its rejection in favor of the alternative hypothesis.

Experimental Plan

A detailed strategy designed to test a hypothesis in a controlled environment.

Completely Randomized Design

An experimental design where subjects are randomly assigned to treatments, ensuring that each treatment group is statistically equivalent at the start of the experiment.

Randomized Block Design

An experimental design that groups subjects into blocks based on certain variables to control the variables' effect on the experiment, and randomly assigns treatments within those blocks.