Triumph Division of Traveling Fantasies,is Evaluated Based on Residual Income

question 53

Multiple Choice

Triumph Division of Traveling Fantasies,is evaluated based on residual income generated.In the most recent year,the Triumph Division generated a residual income of $2,000,000 and net income of $5,000,000.The target rate of return for all divisions of Traveling Fantasies is 20%.What was the return on investment for the Triumph Division?

• A)40%
• B)13%
• C)20%
• D)33%

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Definitions:

Degree Of Freedom

The number of independent pieces of information available to estimate another piece of information, often in statistical analysis.

Chi-Square Test

A statistical test used to determine if there is a significant association between two categorical variables.

Expected Cell Counts

Predicted frequencies in cells of a contingency table in statistics, assuming that the null hypothesis is true.

Observed Cell Counts

The actual frequencies or numbers of observations recorded or categorized in each cell of a contingency table in statistical analysis.