When an Analyst Uses Measures of Past Profitability to Forecast

question 36

Short Answer

When an analyst uses measures of past profitability to forecast the firm's future profitability the expectation is that those revenues,gains,expenses and losses will ____________________.

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Definitions:

Qualitative Methods

Research methods that collect and analyze non-numerical data to understand concepts, thoughts, or experiences.

Statistical Decision-making Model

A framework used to make informed decisions based on the analysis of data and statistical methods.

Analytic Techniques

Methods used in analyzing data or solving problems through detailed examination and evaluation.

Hypothesis

A hypothesis is a proposed explanation or educated guess for a phenomenon, based on observation, that can be tested through further investigation and experimentation.