For Purposes of Comparison, We Can Convert the Frequency Distribution

question 41

Multiple Choice

For purposes of comparison, we can convert the frequency distribution by dividing the frequency of each value by the total number of observations, which results in the:

• A) comparative distribution
• B) variable distribution
• C) count distribution
• D) percentage distribution
• E) standard distribution

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Definitions:

Horizontal Analysis

A technique for evaluating a series of financial statement data over a period of time, to determine the increase (decrease) that has taken place, expressed as either an amount or a percentage.

Vertical Analysis

A method used in financial statement analysis where each line item is listed as a percentage of a base figure, enabling comparison across different periods or companies.

Horizontal Analysis

An analysis tool used in financial statement analysis to compare historical data, such as revenues and earnings, across different periods.

Percentage Change

A mathematical calculation that depicts the degree of change over time, often used to compare the difference in quantities or values.