The Average Run Length Indicates How Often a False Alarm

question 127

Short Answer

The average run length indicates how often a false alarm is expected to occur.That is,the average run length is one divided by the probability of a Type ____________________ error.

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Definitions:

Expenses

The costs incurred by a business in the process of earning revenue, including operations, maintenance, and administrative costs.

Revenues

The total income generated from normal business operations and other activities, before any expenses are subtracted.

Cash Basis

An accounting method that recognizes revenues and expenses only when cash is exchanged.

GAAP

Generally Accepted Accounting Principles; the common set of accounting standards and procedures used in the U.S. to compile financial statements.