Managers Need an Understanding of Statistics to Be Able to Present

question 14

True/False

Managers need an understanding of statistics to be able to present and describe information accurately, draw conclusions about large populations based on small samples, improve processes, and make reliable forecasts.

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Definitions:

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain for a business.

Net Present Value

A financial metric that calculates the present value of net cash flows from an investment, considering the time value of money.

Assumptions

Premises or statements taken as true without proof for the purpose of argument or investigation in analytical or operational processes.

Bottleneck Operation

A stage in the production process that reduces the overall capacity because its work rate is slower than that of other stages.