Which Technique Is Used to Show the Effects of Changing

question 37

Multiple Choice

 Which technique is used to show the effects of changing one or more variables on an outcome?

• A) sensitivity analysis
• B) decision tree
• C) Monte Carlo analysis
• D) systems analysis

Gain proficiency in preparing financial statements from adjusted trial balances.

Understand the concept of cash-basis and accrual-basis accounting.

Appreciate the importance and methods of depreciation and its impact on financial statements.

Recognize the significance of revenue recognition and its potential for fraud.

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Definitions:

Population Standard Deviation

A measure of the dispersion or spread of a set of data points in a population dataset.

Confidence Interval

A range of values, derived from sample data, that is likely to contain the value of an unknown population parameter with a certain level of confidence.

Population Mean

The average of all observations or scores in a population.

Confidence Level

The probability that a confidence interval will contain the true population parameter.