If a company reports that its quarterly earnings will be between $100 million and $125 million,the range is an example of ________ variation.
A)chance
B)external
C)assignable
D)controlled

Question

Quizplus · Accepted Answer

The range given of $100 million to $125 million for quarterly earnings is an example of chance variation, meaning it is due to random fluctuations in the market and external factors beyond the control of the company. Choice B, external variation, is similar to chance variation and also refers to factors outside the control of the company. Choices C and D, assignable and controlled variation, respectively, refer to variations that are within the company's control and are caused by specific factors that can be identified and addressed.

If a Company Reports That Its Quarterly Earnings Will Be