Please Refer to the Following Data: Which of the Following

question 29

Multiple Choice

Please refer to the following data: Which of the following statements is a valid conclusion based on this data?

• A)Profitability in 2014 took a dive as operating expenses increased by 30.8%.
• B)Profitability in 2014 improved greatly, as net income increased significantly as a percentage of sales.
• C)Net income in 2014 increased 12.6% over the prior year.
• D)Net income in 2014 went down because gross profit as a percentage of sales declined over the 2-year period.

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Definitions:

Nominal

Refers to a type of variable that represents categories with no intrinsic order or ranking.

Ordinal

A scale of measurement where numbers represent ordered categories that have a meaningful sequence, but the intervals between the categories are not necessarily equal.

Ratio Scales

Ratio scales are a type of measurement scale that not only have order and equal intervals but also have a true zero point, allowing for the calculation of ratios.

"True" Zero

A point on a scale of measurement that represents a complete absence of the property being measured, as opposed to a mere baseline or reference point.