If You Use Information About a Sample to Draw a Conclusion

question 44

Multiple Choice

If you use information about a sample to draw a conclusion about a population,you are doing:

• A)Inferential parameters
• B)Descriptive statistics
• C)Inferential statistics
• D)The wrong kind of statistics

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Definitions:

Understated

Describes an amount reported lower than it actually is, either in financial statements or any other reporting context.

Overstated

Refers to financial statements or figures being reported as more than their actual or true value.

Cost-to-retail Ratio

A method used to estimate the value of ending inventory and cost of goods sold by comparing the cost of goods available for sale to the retail price of the goods.