You Reported a Relationship That Really Does Not Exist

question 13

Multiple Choice

You reported a relationship that really does not exist. What did you do?

• A) Impossible to determine without knowing what the variables are
• B) Generalized from a sample to a population
• C) Committed a Type II error
• D) Committed a Type I error
• E) More than one of the above

---

Definitions:

Estimated Bad Debts

A provision for accounts receivable that are expected not to be collected, thereby adjusting the value of gross receivables to a more realistic figure.

Uncollectible Account

An account receivable that a company deems unlikely to be collected and thus writes off as a bad debt expense.

Net Income

The total earnings of a company after subtracting all expenses from revenue, representing the profit made in a given period.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available for running day-to-day operations.