Which of the Following Represents a Disadvantage of Using the Sample

question 102

Multiple Choice

Which of the following represents a disadvantage of using the sample range to measure spread or dispersion?

• A)It produces spreads that are too large.
• B)The sample range is not measured in the same units as the data.
• C)The largest or smallest observation (or both)may be an outlier.
• D)None of the above is correct.

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Definitions:

Profit-Volume Chart

A graphical representation that shows the relationship between a firm's profits and its volume of sales.

Cost-Volume-Profit Chart

A graphical tool used in managerial accounting to analyze how changes in cost and volume affect a company's profit.

Contribution Margin

The gap between a product's sales revenue and its variable expenses, which serves to offset fixed costs and produce earnings.

Variable Cost

Expenses that adjust in direct correlation with changes in production or sales levels.