This Variety of Error Has Also Been Referred to as "Noise

question 151

Multiple Choice

This variety of error has also been referred to as "noise." It is

• A) systematic error.
• B) random error.
• C) measurement error.
• D) background error.

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Definitions:

Return-On-Sales Ratio

A financial metric that calculates how efficiently a company is generating profits from its revenue.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity.

Inventory Turnover

A financial metric indicating how many times a company has sold and replaced inventory over a given period.

Fixed-Asset Turnover

A financial ratio that measures a company's ability to generate sales from its fixed assets.