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Which of the Following Is NOT Part of the Methodology

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Which of the following is NOT part of the methodology used in designing substantive tests of balances?


Definitions:

Cumulative Probability

The probability that a random variable is less than or equal to a specific value, representing the accumulation of individual probabilities.

Demand Probability

The likelihood or chance of a product or service being purchased at various levels of demand within a specific period.

Expected Demand

The amount of product or service that consumers are projected to purchase at a given price over a specified period.

Monte Carlo Simulation

A computational technique that uses random sampling and statistical modeling to estimate mathematical functions and simulate the behavior of complex systems.

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