Which of the Following Would Not Be Considered a Good

question 42

Multiple Choice

Which of the following would not be considered a good managerial tool in making a decision for determining a capital investment?

• A) Further evaluate assets that are dissimilar in nature or have different useful lives.
• B) Using only quantitative measures to purchase an asset.
• C) Analyzing the lease vs purchase option.
• D) Considering income tax ramifications.

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Definitions:

Nominal Data

A type of categorical data for which the categories do not have a natural order or ranking.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it depends on the chosen significance level.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true, usually set before the experiment.

Seat Belts

Devices aimed at protecting vehicle passengers from injurious motions that might occur in the event of an accident or abrupt halt.