Match Each Definition That Follows with the Term (A-F) It

question 149

Multiple Choice

Match each definition that follows with the term (a-f) it defines.
-The length of time it will take to recover through cash inflows the dollars of a capital outlay

• A)Capital rationing
• B)Annuity
• C)Capital investment analysis
• D)Internal rate of return method
• E)Payback period
• F)Accounting rate of return

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Definitions:

Spearman Rank Correlation

An unparametric method for determining rank correlation that evaluates the extent to which two variables' relationship can be characterized by a monotonic function.

Ordinal Variables

Variables that represent categories with a natural order but which do not have a fixed interval between values, allowing for ranking but not quantifiable difference measurement.

Interval Variables

Variables that have meaningful distances between measurements but do not have a true zero point, allowing for both positive and negative values.

Normality Requirement

The assumption that the data or residuals in certain statistical models follow a normal distribution, required for the validity of many tests.