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When Should an Analyst Use Nominal Cash Flows and When

question 59

Essay

When should an analyst use nominal cash flows and when should an analyst use real cash flows?

Understand the concept of degrees of freedom and its calculation for chi-squared tests.
Differentiate between dependent and independent events in probability.
Recognize the distinction between goodness-of-fit tests and tests for independence.
Calculate expected frequencies using binomial and multinomial distributions.

Definitions:

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