Why Do We Perform Inferential Statistics

question 40

Multiple Choice

Why do we perform inferential statistics?

• A)Because we know our sample is not representative.
• B)Because it is possible we are being misled by sampling error.
• C)Because we want to describe the characteristics of the population.
• D)Because we need to be certain we make the correct decision.

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Definitions:

Sales Price

The amount of money for which a product or service is sold to a customer.

Budgeted Cash Disbursements

An estimate of all cash payments that a business plans to make over a specific period, including expenses, purchases, and investments.

Merchandise Purchases

The buying of goods for resale, specifically those goods bought by a retailer to be sold to customers.

Operating Expenses

Ongoing costs for running a product, business, or system that do not include cost of goods sold but can include items like salaries and utilities.