The Table Below Shows % Growth in Sales for Five

question 4

Multiple Choice

The table below shows % growth in sales for five of Indiana's largest companies, along with the size of each company's capital investment (in $1000s) for the year.Compute the (population) covariance for the two sets of values.

• A)-158,322
• B)-203,436
• C)-126,764
• D)-199,357
• E)-184,585

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Definitions:

Bad Debt Expense

A provision for accounts receivable that are considered unlikely to be collected.

Percentage of Credit Sales

An accounting method used to estimate bad debts expense by applying a fixed percentage to the total credit sales of a period.

Allowance Account

An accounting reserve established to adjust the carrying value of accounts receivable to their net realizable value, recognizing potential losses from uncollectible accounts.

Written Off Accounts

Accounts receivable that a company deems uncollectible and removes from its books.