Inferential Statistics Deal with Collecting and Analyzing Information from Samples

question 8

Multiple Choice

Inferential statistics deal with collecting and analyzing information from samples in order to:

• A) Draw conclusions, or inferences, about the larger population.
• B) Prove that the sample is a perfect replica of the larger population.
• C) Prove that the null hypothesis is incorrect.
• D) Predict that the only differences that exist are chance differences that do not represent random sampling error.

---

Definitions:

Contribution Margin

The difference between the sales revenue of a company and its variable costs.

Fixed Budget

A budget that remains unchanged and is based on a fixed level of activity, regardless of actual levels of output, sales, or revenue throughout the budget period.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for more accurate financial planning and analysis.

Contribution Margin

The difference between sales revenue and variable costs, showing how much revenue contributes to covering fixed costs.