Which of the Following Situations Provides the Most Likely Indication

question 103

Multiple Choice

Which of the following situations provides the most likely indication that fraud exists?

• A) Exelon Corporation's earnings per share this quarter is 10% higher than last quarter.
• B) Quantum Corporation's sales this year is 20% higher than last year's sales.
• C) Papillon Product Inc.'s profits have increased each for the last 5 years, but its cash reserves have decreased steadily in the same time period.
• D) Bobadilla Bookstores opened 10 new stores during the most recent quarter.

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Definitions:

Biases

Systematic patterns of deviation from norm or rationality in judgment, leading to partial, prejudiced, or unfair conclusions.

Data Collection

The process of gathering and measuring information on targeted variables to answer relevant questions and evaluate outcomes.

Control Group

In experimental research, the group of participants that does not receive the treatment or intervention being tested, used as a baseline to measure the effects of the treatment.

Experimental Group

The group in an experiment whose experience is changed as part of the experiment.