An Overly Optimistic Sales Budget May Result in

question 17

Multiple Choice

An overly optimistic sales budget may result in

• A) increases in selling prices late in the year.
• B) insufficient inventories.
• C) increased sales during the year.
• D) excessive inventories.

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Definitions:

Standard Normal Distribution

A normal distribution with a mean of zero and a standard deviation of one, used as a basis for comparison in many statistical methodologies.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to make inferences about the population.

Normal Distribution

A symmetric distribution in the shape of a bell, indicating that occurrences of data close to the mean are more common than those far from the mean.

Statistic

A statistic is a single measure of some attribute of a sample, used to infer or estimate the corresponding attribute in the population.