Is the Data Point, P, an Outlier, an Influential Point

question 98

Multiple Choice

Is the data point, P, an outlier, an influential point, both, or neither?
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• A) Influential point
• B) Outlier
• C) Neither
• D) Both

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Definitions:

Normal Balance

The side (debit or credit) on which increases to the account are recorded, based on the type of account (asset, liability, equity, revenue, expense).

Financial Statement

A written report that quantitatively describes the financial health of a company, including balance sheets, income statements, and cash flow statements.

Permanent/Temporary

Classification of accounts where permanent accounts are balance sheet items carrying over to the next financial period, while temporary accounts are income statement items closed at the end of the period.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, reflecting its nature in accounting equations.