A frequency distribution is a statistical tool used to tabulate how often certain values occur within a given data set. Frequency distributions are often used to tabulate results from surveys and experiments. For example, if you conduct a survey asking people how often they eat out, you could use a frequency distribution to tabulate the … Read more
P-Value: What It Is, How to Calculate It, and Why It Matters What is p-value in simple words? A p-value is a statistical measure that tells you how likely it is that a result occurred by chance. P-values are used to determine whether a result is statistically significant, which means that it is unlikely to … Read more
The term “Departmental Overhead Rate” (DOR) is used to describe the relationship between the overhead costs incurred by a department and the revenue generated by that department. The DOR is typically expressed as a percentage and is used to help managers understand the financial impact of their department’s overhead costs. The DOR can be used … Read more
This technique can be used to solve problems in a variety of fields, including economics, engineering, and science.. The Least Squares Method is a way of finding the best fit for a set of data points by minimizing the squared residuals. Why do we use least squares regression line? The least squares regression line is … Read more
Variability definition is the process of defining the variability of a financial metric. This process involves analyzing the historical data of the metric in question, and determining the level of variation that is present. This information can then be used to inform future decision making regarding the metric. What are the different types of variability? … Read more
Units Per Transaction (UPT) is a metric used to measure the average number of units of a good or service sold per transaction. This metric is used to assess the efficiency of a company’s sales process and the effectiveness of its marketing efforts. To calculate UPT, divide the total number of units sold by the … Read more
The high-low method is one of the most basic techniques used in cost accounting. It involves simply finding the highest and lowest points of a given data set, and using those points to calculate a cost function. This technique is most often used when data points are not evenly spaced, as is often the case … Read more
An assembly line is a production process in which parts (components) are added to a product in a sequential manner to create an end product. Typically, each workstation in an assembly line performs a specific task or set of tasks that are required to build the product. The term “assembly line” can also refer more … Read more
Marginal Cost: Meaning, Formula, and Examples. What is marginal cost benefit analysis? Marginal cost benefit analysis (MCBA) is a tool used by economists to analyze the costs and benefits of a proposed project. MCBA can be used to compare different projects, or to choose the most efficient way to achieve a given goal. MCBA is … Read more
What the Coase Theorem Means for Economics and Law, With Examples What is the Coase theorem and how is it relevant to environmental law? The Coase theorem is a theory in economics that holds that when there are externalities present in a market, the market will seek to correct for them so long as property … Read more
