Sensitivity Testing Involves

question 16

Multiple Choice

Sensitivity testing involves:

• A) checking to see if your teeth hurt when you brush.
• B) seeing how accurate data are.
• C) checking to see if missing data will greatly impact results.
• D) deleting the associated row.

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the per-unit cost of production.

Total Cost

The aggregation of all costs, both fixed and variable, incurred by a business in producing a specific quantity of goods or services.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced; it decreases as production increases.

Average Variable Cost

The total variable costs divided by the quantity of output produced.