Which of These Are Sets of Cash Flows Where All

question 121

Multiple Choice

Which of these are sets of cash flows where all the initial cash flows are negative and all the subsequent ones are either zero or positive?

• A) Expected cash flows
• B) Time line cash flows
• C) Non-normal cash flows
• D) Normal cash flows

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Definitions:

Central Limit Theorem

A statistical theory that states that given a sufficiently large sample size from a population with a finite level of variance, the mean of all samples from the same population will be approximately equal to the mean of the population.

Sample Mean

The average value of a sample subset of a larger population, used as an estimate of the population mean.

Point Estimate

A single value estimate for a population parameter derived from a sample.