Which Component of Strategy Measures the Changes in Operating Income

question 13

Multiple Choice

Which component of strategy measures the changes in operating income attributed solely to an increase in the quantity of output between Year 1 and Year 2?

• A) the growth component
• B) the price-recovery component
• C) the productivity component
• D) the cost leadership component

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Definitions:

Mean

The average of a set of numbers, calculated by dividing the sum of all the numbers by the quantity of numbers.

Standard Deviation

A statistical measure that quantifies the variability or dispersion of a dataset relative to its mean; used to gauge the amount of variation or spread in a set of data points.

Percentile

A measure indicating the value below which a given percentage of observations in a group of observations falls.

Normal Random Variable

A variable whose values are distributed according to a normal distribution.