Descriptive statistics are used to describe the basic features of the data in a
study. They provide simple summaries about the sample and the measures.
Together with simple graphics analysis, the
What does the phrase you get what you measure refer to?
The phrase you get what you measure means that what you measure will predetermine
performance. For example, in schools where test scores are measured, students will
naturally learn how to take the te
Starbucks in 2004 announced that it will increase prices at its stores before the end of
year. Analysts expect prices to rise by 4% to 5%. Prices are going up to adjust for
increases in dairy products and rents. The firm is seen as the clear leader in the
Profit maximization is not
1. What is opportunity cost and why is it an important concept in the capital
budgeting process? The opportunity cost concept applies to almost every financial
decision we make as individuals. Can you give an example from your own
1. Risk-free assets. Government bonds are considered to be 'risk-free' assets.
Why, then, do they give a return? Are they truly completely free of risk?
U.S. government bonds are generally considered to be risk-free assets because they
are backed by the U
1.What is financial leverage? What are the benefits and risks associated with financial
Financial leverage refers to the use of debt to acquire additional assets. It offers an
alternative way to increase profits by financing a portion of the bus
Hotels and airline companies often sell their rooms and seats at deep discounts on sites
like www.priceline.com and www.hotwire.com. The prices for these hotel rooms and
airline seats are often way below what the company needs to make to cover its costs.
This week's question focuses on cost allocation. A major manufacturer decided to
put one of its divisions up for sale because managerial information showed the
components produced by this division is losing money. A group of employees in the
What are the major reasons for accounting scandals (WorldCom, Enron, etc.)?
How do firms attempt to meet Wall Street analysts projection of earnings?
One major reason for such accounting scandals is top managers focus on meeting or
even beating the predic