Lambda Has a Major Problem

question 4

Multiple Choice

Lambda has a major problem.Which of the answers below best represents that problem?

• A)it will underestimate the association present in a table if marginals are substantially unequal
• B)it will overestimate the association present in a table if marginals are substantially unequal
• C)it will become more sensitive when cases in a table are equally distributed
• D)it can provide a zero result when probability estimates are above .05

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Definitions:

AASB 12/IFRS 12

Refers to the disclosure of interests in other entities, providing requirements on the disclosure of interests in subsidiaries, joint arrangements, associates, and unconsolidated structured entities.

Unrecognised Share of Losses

Losses attributable to an investor’s share in an investee that are not reflected in the investor’s financial statements because they exceed the investor's interest in the investee’s equity.

Discontinued Use

Refers to the cessation of operations or production of a segment or unit within a business.

Equity Method

An accounting technique used to record an investor’s proportional share of an associate company’s earnings or losses on its financial statements.