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What Is Vertical Analysis,and Why Is It Useful in Performing

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Essay

What is vertical analysis,and why is it useful in performing financial performance measurement?


Definitions:

Mean

The arithmetic average of a set of values, calculated by adding them together and dividing by the number of terms.

Normal Distribution

It's a probability distribution with symmetry about the mean, proving that data points near the mean have a higher frequency of occurrence compared to those further away.

Mean

The arithmetic average of a set of numbers, obtained by dividing the sum of the numbers by the count of numbers.

P(Z > 3.00)

The probability that a value Z, on a standard normal distribution, is greater than 3.00.

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