When Using the Equation Estimate - Actual Result = Error

question 106

Multiple Choice

When using the equation Estimate - Actual result = Error to collect data,it is possible to evaluate estimators in terms of _____.

• A)how close their total error is to zero
• B)how dispersed are their errors
• C)whether their errors tend to be biased
• D)all of the above

---

Definitions:

Credit Policy Relaxation

The act of making a company's criteria for extending credit more lenient, aiming to boost sales at the risk of higher bad debts.

Accounts Receivable

Unpaid dues from customers to a company for goods or services already delivered.

Zero Balance Accounts

A checking account in which a balance of zero is maintained by automatically transferring funds from a master account in an amount only large enough to cover checks presented.

Excess Funds

Surplus money available with an entity after all expenses and obligations have been met, which can be invested or saved for future use.