A Firm Earning a Profit Can Increase Its Return on Investment

question 125

Multiple Choice

A firm earning a profit can increase its return on investment by: (CMA adapted)

• A) increasing sales revenue and operating expenses by the same dollar amount.
• B) decreasing sales revenues and operating expenses by the same percentage.
• C) increasing investment and operating expenses by the same dollar amount.
• D) increasing sales revenues and operating expenses by the same percentage.

---

Definitions:

Inferential Statistics

Statistical methods used to draw conclusions or inferences about a population based on a sample.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data.

Inferential Statistics

The branch of statistics that allows for making predictions or inferences about a population based on a sample of data.