The Reversal of Conclusions Based on Aggregate and Unaggregated Data

question 40

Multiple Choice

The reversal of conclusions based on aggregate and unaggregated data is called:

• A)Simpson's paradox
• B)Trim's paradox
• C)Poisson dilemma
• D)Simon's paradox

---

Definitions:

Estimated Residual Value

The anticipated market value of an asset at the end of its useful life, used in calculating depreciation.

Double-Declining-Balance

A method of accelerated depreciation which doubles the normal depreciation rate, reducing the value of an asset more quickly.

Depreciation Expense

Systematically spreading the expense of a physical asset over its duration of utility.

Units-of-Activity Method

A depreciation method where the expense is based on the number of units produced or the use of the asset, rather than the passage of time.