Based on the Rule of Three, If No Events Occur

question 29

True/False

Based on the Rule of Three, if no events occur in n independent trials we can set the upper 95 percent confidence bound at 3/n.

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Definitions:

Net Profit Margin

A financial metric that shows the percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from total revenue.

Gross Margin

The difference between sales revenue and the cost of goods sold, representing the profit before deducting operating expenses.

Accounts Receivable Turnover

A financial metric indicating how many times a business collects its average accounts receivable during a period, reflecting credit sales efficiency.

Average Collection Period

The average number of days it takes for a company to receive payment from its customers for invoices issued.