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An Exclusive Preschool Program Has Strict Enrollment Criteria and Only

question 63

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An exclusive preschool program has strict enrollment criteria and only accepts children with very high marks on the enrollment test. Unfortunately, they have found that the enrollment test does not correlate highly with the grades the children make. The probable reason is

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Definitions:

Sales

The total amount of a company's revenues earned from selling its goods or services.

Collect

Refers to the act of gathering or accumulating items or amounts, often used in the context of collecting payments or data.

Net Cash Flow

Net cash flow is the difference between a company's cash inflows and outflows over a specific period, providing insight into the company's liquidity and financial health.

Credit Sales

Sales for which payment is not received at the time of purchase but is instead deferred to a later date, often involving the use of credit terms.

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