For Most Profitable Companies,the Rate Earned on Total Assets Will

question 32

Multiple Choice

For most profitable companies,the rate earned on total assets will be less than:

• A)the rate earned on stockholders' equity.
• B)the rate earned on total liabilities and stockholders' equity.
• C)the rate earned on sales.
• D)cannot be determined without more information.

---

Definitions:

Chi-square Statistic

A measure used in statistics to assess how well an observed distribution matches an expected distribution, used in tests of independence and goodness of fit.

Degrees of Freedom

Degrees of freedom are the number of independent values or quantities which can be assigned to a statistical distribution without violating any constraining conditions.

Category Counts

The tally or frequency of occurrences within different categories or classifications in a dataset.

Probabilities

The likelihood or chance of different outcomes occurring, based on a scale from 0 to 1, where 0 means the outcome is impossible and 1 means the outcome is certain.