What Bias Occurs When Analysts Assume the Subjects They Are

question 10

Multiple Choice

What bias occurs when analysts assume the subjects they are studying pursue coherent, rational, goal-maximizing policies?

• A) Failure to Recognize Questionable Assumptions
• B) Fallacy of Centralized Direction
• C) Fallacy of Big Results/Big Cause
• D) None of the above

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Definitions:

Inventory Turnover Ratio

A metric indicating the number of times inventory is sold and replaced over a specific period, reflecting efficiency in managing inventory.

Days Sales Outstanding

Days Sales Outstanding (DSO) measures the average number of days that it takes a company to collect payment after a sale has been made.

Inventory Turnover Ratio

A measure of how many times a company's inventory is sold and replaced over a period. It indicates the efficiency of inventory management.

ROE

Return on Equity, a measure of a company's profitability that reveals how much profit a company generates with the money shareholders have invested.