Provide an Appropriate Response

question 168

Multiple Choice

Provide an appropriate response.
-In the following summary of a statistical report, tell what crucial information is missing and what more you would want To know before you acted on the report.
A news program reports on a Survey of America's Top Hospitals which found that "only ten hospachieveitals d a Rare 48 out of a possible 50 rating and none of those hospitals are in the Windy City."

• A)The report appears to be making a statement about the quality of hospitals in Chicago (the "Windy City"), but much information is missing. What about hospitals with ratings of 49 or 50? What criteria were used For the ratings? Who actually did the rating?
• B)The sample size and population size are given. However, no information is given about the meaning of "rating" or "rare" or about who actually did the rating.

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Definitions:

Total Assets

The sum of all assets owned by a company, including both current and noncurrent assets, representing the total resources available to the firm.

Trend Balance Sheet

A trend balance sheet is a financial statement that shows the progression of key financial data over a series of periods, illustrating trends.

Long-Term Liabilities

Obligations or debts that a company is responsible for paying which are due more than one year in the future.

Total Liabilities & Equity

The sum of all financial obligations and owners' equity of a business, representing the sources of funding for its assets.