An Accounting fiRm Is Planning for the Next Tax Preparation

question 42

Multiple Choice

An accounting firm is planning for the next tax preparation season. From last year's returns, the firm
Collects a systematic random sample of 100 filings. The 100 filings showed an average preparation
Time of 90 minutes with a standard deviation of 140 minutes.
What assumptions do you need to make about the shape of the population distribution of all
Possible tax preparation times to make inferences about the average time to complete a tax form?

• A) The population distribution is skewed to the right.
• B) The population distribution is skewed to the left.
• C) The population distribution is normal.
• D) The shape of the population distribution does not matter.

Recognize the necessity of a base case in recursive methods to prevent infinite recursion.

Understand how recursive methods are executed by the computer system.

Apply recursion to solve problems by writing recursive methods, including factorial and power computations.

Distinguish between the concepts of base and recursive cases in a recursive method.

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Definitions:

Diversifiable Risk

A type of risk that can be reduced or eliminated from a portfolio through the process of diversification, as it's not correlated to market risk.

Employees

Individuals who are hired by a company or organization to perform work in exchange for compensation.

Systematic Risk

The potential for loss inherent in the entire market or an entire market segment, also known as market risk or non-diversifiable risk.

Beta

A measure of a stock's volatility in relation to the overall market, indicating its risk level compared to the market average.