What Might Be a Reason to Choose Parametric Tests Over

question 18

Multiple Choice

What might be a reason to choose parametric tests over non-parametric tests even if some parametric assumptions are violated?

• A) Non-parametric tests are harder to carry out.
• B) Non-parametric tests are less powerful.
• C) Parametric tests are less robust.
• D) Parametric tests are more likely to show causal effects.

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Definitions:

Favorable

A term used in accounting and finance to describe a situation or variance that results in a better-than-expected financial outcome.

Standard Cost System

A method of cost accounting in which predetermined costs are used for valuing inventory and recording operations, facilitating variance analysis.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual units of production, calculated before the period begins.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost allocated to production, based on the actual hours worked.