The Millard Division's Operating Data for the Past Two Years

question 67

Multiple Choice

The Millard Division's operating data for the past two years are provided below:
$\begin{array}{l}\begin{array} { | l | r | r | } \hline & \text { Year 1 } & \text { Year 2 } \\\hline \text { Return on Investment } & 12 \% & 36 \% \\\hline \text { Shareholders' Equity } & \$ 800,000 & \$ 500,000 \\\hline \text { Operating Income } & ? & \$ 360,000 \\\hline \text { Turnover } & ? & 3 \\\hline \text { Margin } & ? & ? \\\hline \text { Sales } & \$ 3,200,000 & ? \\\hline\end{array}\\\text { Millard Division's margin in Year } 2 \text { was } 150 \% \text { of the margin in Year } 1 .\end{array}$


-What were the average operating assets for Year 2?

• A) $1,000,000.
• B) $1,080,000.
• C) $1,200,000.
• D) $1,388,889.

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Definitions:

Population Parameter

A population parameter is a numerical value that represents a characteristic of an entire population, such as its mean or standard deviation.

Point Estimate

A statistical measure that provides the best single value estimate of a population parameter.

Mean Amount

The average value of a set of numbers, calculated by adding all the values and dividing by the count of numbers.

Sample Mean

Sample mean refers to the average of all the data points in a sample taken from a population, serving as an estimate of the population mean.