A Sunk Cost Is

question 40

Multiple Choice

A sunk cost is

• A)a cost that may be saved by not adopting an alternative.
• B)a cost that may be shifted to the future with little or no effect on current operations.
• C)a cost that cannot be avoided because it has already been incurred.
• D)a cost which does not entail any pound outlay but which is relevant to the decision-making process.

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Definitions:

Normally Distributed

Describes a statistical distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.

Mean

The average value of a set of numbers, indicating the central point of a data distribution.

Standard Normal

A normal distribution with a mean of zero and a standard deviation of one, used as the basis for z-scores in statistics.

Standard Deviation

A metric that calculates how much a dataset's values spread out or diverge from their average.