Recurrence Intervals Are Often Used as Estimates of When the Next

question 35

Essay

Recurrence intervals are often used as estimates of when the next eruption might occur.Explain what a recurrence interval is and how it is calculated.Why is a recurrence interval not the most useful means of forecasting eruptions?

---

Definitions:

Subsidiary's Adjusted Income

The net income of a subsidiary company after making adjustments for fair value measurements, currency translation, and other accounting policies.

Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings.

Notes Payable

A written promise to pay a specified sum of money, usually with interest, by a certain date, classified as a liability on the balance sheet.

Gross Margin

The difference between revenue and cost of goods sold, expressed as a percentage of revenue, indicating the financial health of a company’s sales.