An Evaluation of the Performance of an Investment Centre Is

question 36

Multiple Choice

An evaluation of the performance of an investment centre is based on:

• A) the economic return relative to the resources invested.
• B) the gross profit of an investment.
• C) a medium-term performance indicator.
• D) the manager's manipulation of the financial performance of the investment.

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Definitions:

Indicator Variable

A binary variable that takes the value of 1 if a specific condition is true and 0 if false, used in statistical modeling.

Certain Condition

A specific requirement or state of being that must be met or is assumed to be true within a particular context.

Coefficient

A constant figure or numerical value which is set before a variable and multiplies it in an equation of algebra.

Multiple Regression Model

A statistical method used to explain how a dependent variable is influenced by two or more independent variables.