Which of the Following Statements If FALSE Concerning the Conversion

question 5

Multiple Choice

Which of the following statements if FALSE concerning the conversion of continuous measures to categorical measures?

• A) When converting, there is no loss of information about a variable.
• B) Because higher levels of measurement have all the properties of measures lower in the hierarchy, conversion is perfectly acceptable.
• C) In many cases, conversion is advisable for aiding in interpretation of research study results.
• D) Analyses should be performed using the highest level of measurement possible for a particular variable.
• E) A simple solution would be to provide both types of results.

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Definitions:

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency.

Capacity Utilization

The percentage of a firm or country's productive capacity that is being used at a given time.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.

Percentage of Sales Approach

A forecasting method that estimates future financial outcomes based on a percentage relationship between sales growth and other financial accounts.