In Practice, Managers Rely Almost Exclusively on Statistical Forecasts

question 62

True/False

In practice, managers rely almost exclusively on statistical forecasts.

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Definitions:

Float

Money tied up in the check-clearing process.

Check Clearing

Check clearing is the process through which banks verify and process the transfer of funds from the check issuer's account to the recipient's account, finalizing the transaction.

Transit Float

The time difference between when a payment is made and when it is available in the recipient's account.

Processing Float

The time delay between when a check is written and when it is actually deducted from the payer's account, often utilized in managing company cash flows.