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i. The shape of the F distribution is determined by the degrees of freedom for the F-statistic, one for the numerator and one for the denominator. ii. Like Student's t distribution, a change in the degrees of freedom causes a change in the shape of the F distribution.
iii. The calculated F value must be equal to or greater than zero (0) .
Net Book Value
The value of an asset after accounting for depreciation or amortization, representing its current worth on the balance sheet.
Investment Centres
Units or divisions within a company that are responsible for making investment decisions and are evaluated based on their return on investments.
Return On Investment
A financial metric used to evaluate the efficiency or profitability of an investment, calculated as the return relative to the investment’s cost.
Residual Income
A measure of performance and profitability calculated as the net operating income after deducting a charge for the cost of capital.
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