Compare and Contrast the Benefits and Weakness of Each Calculation--TAM,SAM,and

question 5

Essay

Compare and contrast the benefits and weakness of each calculation--TAM,SAM,and SOM.

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Definitions:

Squared Deviations

The squares of the differences between individual observations and the mean of those observations, often used in statistical analysis to measure variance.

Regression Line

A statistical tool used in linear regression analysis that represents the relationship between two variables, showing the expected value of the dependent variable for a given value of the independent variable.

Margin Of Safety

The excess of budgeted or actual dollar sales over the break-even dollar sales.

Margin Of Safety Percentage

A financial ratio that measures the difference between actual or projected sales and the break-even point, expressed as a percentage of sales.