Which of the Following Statements Is False

question 20

Multiple Choice

Which of the following statements is false?

• A) Likelihood ratio indicates the probability of the existence of the diagnosis.
• B) Sensitivity is the ability of a measure to detect dysfunction.
• C) Specificity indicates the absence of a disorder.
• D) Reliable measures measure what they are supposed to measure.

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Definitions:

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable costs have been subtracted, indicating how much contributes towards fixed costs and profit.

Fixed Expenses

Expenses that do not fluctuate with changes in production level or sales volume, such as lease payments, insurance, and property taxes.

Margin of Safety

The difference between actual or expected sales and the break-even sales, measured to assess the risk of incurring losses.

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating how much contributes to covering fixed costs and generating profit.