Extreme values of observations may be the result of:
A)a temporary plant shutdown.
B)a misplaced decimal point in the recorded data.
C)classifying a cost incorrectly.
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Extreme values of observations can be caused by any one of these factors or a combination of them. A temporary plant shutdown may result in reduced production costs, leading to an extreme observation. A misplaced decimal point may lead to an overstatement or understatement of a cost, causing an extreme value. Misclassification of costs may result in an overstatement or understatement, leading to an extreme observation. Therefore, all of these answers are correct.

Extreme Values of Observations May Be the Result Of