Which of the Following Is Appropriate to Conduct a Hypothesis

question 16

Multiple Choice

Which of the following is appropriate to conduct a hypothesis test for the difference between two population proportions under independent sampling.

• A) In every case.
• B) Only if n₁ ≥ 30 and n₂ ≥ 30.
• C) Only if n₁ ≥ 5, n₁(1 - ) ≥ 5, n₂ ≥ 5, and n₂(1 - ) ≥ 5.
• D) Only if n₁ ≥ 30, n₁(1 - ) ≥ 30, n₂ ≥ 30, and n₂(1 - ) ≥ 30.

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Definitions:

Net Present Value

In capital budgeting, this refers to the variance between the current value of incoming cash and the current value of outgoing cash across a specific period, utilized to determine an investment's profit potential.

Present Value

The contemporary value of money expected to be received in the future or a flow of cash, discounted by a certain rate of return.

IRR

The Internal Rate of Return (IRR) is a financial metric used to estimate the profitability of potential investments by calculating the interest rate at which the net present value of costs (cash outflows) of the investments equals the net present value of the benefits (cash inflows).

Internal Rate of Return

The specific interest rate at which the sum of all cash flows from a project equals a net present value of zero.