Data Mining Is a Tool for Allowing Users to

question 21

Multiple Choice

Data mining is a tool for allowing users to

• A)quickly compare transaction data gathered over many years.
• B)find hidden relationships in data.
• C)obtain online answers to ad-hoc questions in a rapid amount of time.
• D)summarize massive amounts of data into much smaller,traditional reports.
• E)access the vast amounts of data in a data warehouse.

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Definitions:

Financial Leverage

The use of borrowed money to increase the potential return of an investment, amplifying both potential gains and losses.

ROA

Return on Assets, a profitability ratio indicating how efficient a company is at using its assets to generate earnings.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholder's equity.

Earnings Variability

The fluctuation or volatility in a company's earnings over time, indicating the uncertainty and risk associated with the company's performance.