You Have Just Presented a Grim but Realistic Prediction of Your

question 22

Multiple Choice

You have just presented a grim but realistic prediction of your company's earnings for the next quarter to the board of directors. The chairman of the board is unhappy with your analysis and says, "This company has turned a profit for the past twenty years! How can you be so pessimistic about the next three months?" Which of the following is the best way to respond to his question?

• A) "Past success doesn't rule out future hardship."
• B) "You're right! Our estimates could be incorrect."
• C) "Do you have alternative data that paints a different picture?"
• D) "You're concerned about our accuracy. Our projections are based on…"
• E) "I'm the expert on this data, so I know I'm correct."

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Definitions:

Lower Two Quintiles

Refers to the bottom 40% of the population, often in terms of income distribution, highlighting socioeconomic status.

Income Received

The total earnings obtained by an individual or entity, including wages, salaries, profits, rents, and other forms of financial gains.

Lowest Quintile

describes the bottom 20% segment of a population sorted by income or wealth, usually referenced in economic studies of inequality.

Income Received

The amount of money or monetary value received by an individual or entity in exchange for goods provided, services rendered or as a return on investments.