## Introduction to Statistics

## 1. Data Types

The number of pages in a daily newspaper: **Discrete Numerical**

The colours of medals won at an Olympic Games: **Ordinal Categorical**

The maximum daily temperature in a city: **Continuous Numerical**

The brands of televisions in a store: **Nominal Categorical**

## 2. Survey Bias

In order to determine which brand of car is the most popular in Australia, a telephone survey conducted on behalf of a motor car company rings 100 households in Adelaide between the hours of 2 and 5 o’clock in the afternoon to ask

Read More## Social Research Techniques

### 1. Likert Scale

Developed by Rensis Likert in the 1930s, the Likert scale is a widely used method for measuring opinions and attitudes. It presents respondents with a series of statements and asks them to indicate their level of agreement or disagreement using a five-point scale:

- Strongly Agree
- Agree
- Indifferent
- Disagree
- Strongly Disagree

Each response is assigned a numerical value, and an overall score is calculated by summing the values of all responses.

### 2. Probability Sampling

Probability sampling is

Read More## T-Tests, ANOVA, and Correlation in Statistical Analysis

## T-Tests

### Understanding T-Distributions

**True Statement:** The larger the sample size, the more a *t* distribution resembles a normal curve.

### Estimating Population Variance

When estimating the variance of a population from a sample, the sample variance cannot be used directly because it tends to be slightly too small—it underestimates the population variance.

### T-Test vs. Z-Test

The difference between a *t* test for a single sample and a *Z* test for a single sample lies in how the variance of the known population

## NPV and IRR Analysis for Mutually Exclusive Projects & Ethical Considerations

## NPV Profiles: Scale Differences

A company is considering two mutually exclusive expansion plans:

### Plan A

Requires a $40 million expenditure on a large-scale integrated plant that would provide expected cash flows of $6.4 million per year for 20 years.

### Plan B

Requires a $12 million expenditure to build a somewhat less efficient, more labor-intensive plant with expected cash flows of $2.72 million per year for 20 years. The firm’s WACC is 10%.

### a) Calculate each project’s NPV and IRR

Using a financial calculator,

Read More## Financial Calculations: DSO, ROA, ROE, and More

## Financial Calculations

### 1. Baker Brothers’ Days Sales Outstanding and Cash Freed Up

**Question:** Baker Brothers has accounts receivable of $700,000 and sales of $2,000,000. What is Baker’s days sales outstanding? How much cash would Baker Brothers free up if it reduced its days sales outstanding to 45 days?

**Solution:**

DSO = (Accounts Receivable / Sales) * 365

DSO = (700,000 / 2,000,000) * 365 = 128 days

Cash Freed Up = (128 days – 45 days) * (2,000,000 / 365) = $454,794.35

### 2. Debt Ratio from Equity Multiplier

**Question:**

## Audit Planning & Supervision: A Comprehensive Guide

## 1. Audit Planning

### Definition

Audit planning is the process of formulating the desired future state for an organization. It involves considering alternative courses of action, evaluating them, and defining appropriate mechanisms to achieve the proposed objectives. Additionally, it includes determining the allocation of human and physical resources for efficient use.

### 2. Importance of Audit Planning

Adequate planning and monitoring enable auditors to obtain satisfactory results that support their opinion.

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