Which Two Ratios Are Used in the DuPont System to Create

question 68

Multiple Choice

Which two ratios are used in the DuPont system to create return on assets?

• A) Return on assets and asset turnover
• B) Profit margin and asset turnover
• C) Return on total capital and the profit margin
• D) Inventory turnover and return on capital assets

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Definitions:

Sampling Bias

A bias in which certain members of a population are disproportionally represented in a sample, leading to inaccurate results.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two quantitative variables.

Statistical Measure

A quantifiable value used to summarize or describe a set of data.

Meta-Analysis

A statistical technique that combines the results of multiple studies to derive a more comprehensive understanding of a particular research question.