How Should Financial Budgets Be Thought Of

question 6

Multiple Choice

How should financial budgets be thought of?

• A) as a tool for limiting expenditures
• B) as a method for obtaining the most productive and profitable use of an organization's resources
• C) as a method for rationing the profits from the past year
• D) as a method for determining who should receive the largest pay raise
• E) as a tool for forecasting future profits

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Definitions:

Z Statistic

A type of standard score that indicates how many standard deviations an element is from the mean of its population.

Normal Distribution

A bell-shaped frequency distribution curve that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.

One-tailed Test

A statistical hypothesis test in which the alternative hypothesis specifies a direction of the effect.

One-tailed Hypothesis Test

A statistical test in which the region of rejection is on only one side of the sampling distribution, used when a specific direction for the data is predicted.