If Three Possible Values of a Variable Represent Distinct Categories

question 163

Multiple Choice

If three possible values of a variable represent distinct categories of similar objects or events,the variable is referred to as a:

• A)numerical variable.
• B)categorical variable.
• C)binary variable.
• D)none of the above

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Definitions:

Profitability

A measure of the efficiency and success of a business in generating profits from its operations over a period of time.

Horizontal Analysis

A financial analysis technique that examines the changes in the amounts of specific financial statement items over a period of time.

Base Year Figure

A reference point in time used for comparison in financial and economic analysis to track changes and trends.

Common-sized Income Statement

An income statement in which each line item is expressed as a percentage of sales revenue, facilitating comparison across periods and companies.