If a Company's Ratio of Net Income to Net Sales

question 79

True/False

If a company's ratio of net income to net sales (generally referred to as profit margin on sales)is low, then its return on investment will be low.

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Definitions:

Undercoverage

A bias in statistical sampling where some members of the intended population are inadequately represented in the sample.

Nonresponse Bias

Bias in survey or study results that occurs when respondents differ significantly from nonrespondents, affecting the representativeness of data.

Voluntary Response Bias

Bias in survey results caused by individuals choosing to respond on their own initiative, which may not be representative of the whole population.

Response Bias

A type of bias that occurs in survey research when respondents answer questions inaccurately or misleadingly.