Making Intercompany Comparisons Is Equally as Important to Insiders as to Outsiders

question 105

Short Answer

Making intercompany comparisons is equally as important to insiders as to outsiders. What two measures can provide investors and analysts with information regarding a company's property, plant, and equipment?

---

Definitions:

Standard Deviation

A measurement indicating the range of separation or variance among a set of data.

Mean

The arithmetic average of a set of numbers, calculated by adding all the numbers and dividing by the count.

Standard Normal Curve

A bell-shaped curve that is symmetric about the mean, showing the distribution of a standard normal variable where the mean is zero and the standard deviation is one.

Z-score

A statistic that measures the distance of a single data point from the mean, expressed in units of standard deviation.