When a Financial Analyst Determines the Percentage Change in Operating

question 82

Multiple Choice

When a financial analyst determines the percentage change in operating income for the five-year period from 2011 to 2015, she is performing a

• A)time series analysis.
• B)vertical analysis.
• C)profitability analysis.
• D)cross-sectional analysis.

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Definitions:

Standard Deviation

A measure of the amount of variability or dispersion of a set of data values, illustrating how much individual data points deviate from the mean.

Variable

Any characteristic, number, or quantity that can be measured or quantified.

Normally Distributed

Describes a distribution that follows a normal curve or bell-shaped pattern, where most of the data points are close to the mean.

Standard Deviation

Standard Deviation is a measure of the amount of variability or dispersion around the mean value of a set of data.