A Company Currently Earning a Profit Can Increase Its Return

question 85

Multiple Choice

A company currently earning a profit can increase its return on investment (ROI) by:

• A) Increasing sales revenue and operating expenses by the same dollar amount.
• B) Decreasing sales revenues and operating expenses by the same percentage.
• C) Increasing investment and operating expenses by the same dollar amount.
• D) Increasing sales revenues and operating expenses by the same percentage.
• E) Decreasing investment and sales by the same percentage.

---

Definitions:

Chance Fluctuation

Random variations in data or processes that are not due to any specific cause, often considered in statistical analyses.

File Drawer Problem

The bias introduced into scientific literature when studies with positive results are more likely to be published than studies with negative or non-significant findings.

Replication

refers to the process of conducting a study or experiment again with the aim of verifying the results obtained in a previous research.

Statistical Significance

Statistical significance is a measure indicating the likelihood that a result from data analysis is not due to chance, usually determined through a specific threshold value or p-value.