Simulation, Which Is the Use of Probability and Statistical Computer

question 44

Multiple Choice

Simulation, which is the use of probability and statistical computer models to better understand risk, falls under the category of _____ analytics.

• A) prescriptive
• B) predictive
• C) descriptive
• D) diagnostic

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Definitions:

Income Statement

A financial statement detailing a company's revenues, expenses, and profits over a specific period, often quarterly or annually.

Operating Expense

This refers to the costs associated with running a business's day-to-day operations, excluding costs linked to production.

Tax Effect

The impact of a company's tax obligations on its financial statements, including how taxes affect the overall expenses and net income.

Horizontal Analysis

An accounting method used to compare financial data across multiple periods, showing changes in dollar amounts and percentages to identify trends.