Assume That You Have 100 Years of Continuous Temperature Records

question 21

Essay

Assume that you have 100 years of continuous temperature records from your local weather service office.Discuss some of the difficulties you might have trying to determine whether average temperatures have increased during this period.

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Definitions:

Amortization

The method of slowly amortizing the initial expense of a non-physical asset over the period it is expected to be used.

Units-Of-Output Method

A depreciation method where the expense is based on the actual output or usage of the asset, rather than the passage of time.

Double-Declining-Balance Method

A method of accelerated depreciation that doubles the straight-line depreciation rate, leading to higher depreciation expenses in the initial years of asset use.

Straight-Line Method

A method of allocating the cost of a tangible asset over its useful life in equal periodic amounts.