The Profit Margin, a Component of the Rate of Return

question 43

True/False

The profit margin, a component of the rate of return on investment, focuses on the profitability by indicating the rate of profit earned on each sales dollar.

---

Definitions:

Confidence Interval

A range of values, derived from sample statistics, that is believed, with a certain level of confidence, to contain the population parameter of interest.

Credit Sales

Sales made by a business for which payment will be made at a later date, as opposed to immediate cash sales.

Confidence Interval

A confidence interval is a range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter.

Standard Deviation

A statistical measure of the dispersion or spread of data points in a data set, indicating how much the individual data points differ from the mean.