I Trying to Predict Weekly Sales with a Standard Error

question 24

Multiple Choice

i. Trying to predict weekly sales with a standard error of estimate of $1,955, we would conclude that
68 percent of the predictions would not be off more than $1,955, 95 percent would not be off by
More $3,910, and 99.7 percent would not be off by more than $5,865.
ii. The smaller the sample, the smaller the possible error as measured by the standard error of
Estimate.
iii. Approximately 95% of the values lie within two standard errors of the regression line.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

Recognize the criteria for significant influence over an investee and its implications for investment reporting.

Understand the principles and ethics behind financial reporting and investment decisions.

Explain the purpose and effects of reporting Unrealized Gains/Losses in the stockholders' equity section.

Comprehend the role and impact of a Fair Value Adjustment account on the balance sheet.

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Definitions:

Other Comprehensive Income

Income that includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Equity Method

A financial recording method where investments are logged if the investor has a considerable impact on the investee, though not complete control.

Cumulative Losses

Total losses accumulated over a period, often reflecting a company's financial difficulties or losses in investment value.

Fair-Value Method

An accounting strategy used to measure and report the value of certain assets and liabilities on the basis of their actual or estimated fair market prices.