Which of the Following Is Most Likely to Occur If

question 132

Multiple Choice

Which of the following is most likely to occur if a firm under-invests in net working capital?

• A) The firm might not have sufficient cash to pay its bill in a timely manner.
• B) The firm might not have adequate inventory to meet the needs of its customers.
• C) The firm could be losing sales because its terms of sale are too strict.
• D) All of the above.

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Definitions:

Null Hypothesis

The null hypothesis is a type of hypothesis used in statistics that proposes there is no statistical significance in a set of given observations, serving as a default position until evidence suggests otherwise.

Hypotheses

Statements or predictions that can be tested through scientific research or statistical analysis to determine their validity.

Fair Die

A perfectly balanced six-sided die where each face has an equal probability of landing up when rolled.

Goodness-Of-Fit

A statistical test used to determine how well sample data fits a distribution from a population with a normal distribution.