Trying to Predict Weekly Sales with a Standard Error of Estimate

question 22

True/False

Trying to predict weekly sales with a standard error of estimate of $1,955,we would conclude that 68 percent of the predictions would not be off more than $1,955,95 percent would not be off by more $3,910,and 99.7 percent would not be off by more than $5,865.

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Definitions:

Fundamental Characteristics

Essential qualities or attributes that are critical to the definition, operation, or function of a concept, often used in reference to accounting principles.

Assets

Resources owned by a business from which future economic benefits are expected to flow to the enterprise.

Equity

The value of an ownership interest in property or a business, calculated as total assets minus total liabilities; represents what the owners' claim on the assets is.

Entity Assumption

The accounting principle that treats a business as a separate legal and accounting entity, distinct from its owners, managers, or operators.