Regarding Markdowns, Which of the Following Statements Is TRUE

question 73

Multiple Choice

Regarding markdowns, which of the following statements is TRUE?

• A) The markdown ratio is calculated by dividing the sum of markdowns and allowances by net sales.
• B) Markdowns are required because customers will not buy at the original marked-up price.
• C) Markdowns are generally considered to be due to "business errors."
• D) All of these alternatives for markdowns are TRUE.

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Definitions:

Least Squares Regression Line

A straight line that minimizes the sum of the squared differences between the observed values and the values predicted by the line.

Estimated Value

An approximation of a quantity based on available information or statistical methods.

Observations

Individual data points or items recorded during an experiment or survey.

Least Squares Regression Line

A statistical method used to find a straight line that best fits a set of data points by minimizing the sum of the squares of the vertical distances of the points from the line.