Which Statement Is Not True About Standardization

question 5

Multiple Choice

Which statement is not true about standardization?

• A) Standardization is the process of correcting data to reduce them to the same scale by subtracting the sample mean and dividing by the standard deviation.
• B) Standardization is the process of correcting data to reduce them to the same scale by subtracting the sample mean and dividing by the standard error.
• C) The standardized scale will have a mean of zero and a standard deviation of 1.
• D) Standardization allows the researcher to compare variables that have been measured using different types of scales.

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Definitions:

Net Present Value

The difference between the current value of cash inflows and the current value of cash outflows over a period of time; used to evaluate the profitability of an investment.

Internal Rate of Return

The interest rate that brings the net present value of all incoming and outgoing cash flows from an investment or project to a neutral point of zero.

Excel Spreadsheets

A software program used for data organization, analysis, and storage in tabular form.

Profitability Index

A financial tool used to evaluate the attractiveness of an investment, calculated as the present value of future cash flows divided by the initial investment.