Basic Definitions of Two Parameter Testing:
Dependent Samples: It is the samples in which the subjects are matched or paired in some manner. Dependent samples should contain similar sample size; however it is possible to have similar sample size devoid of being dependent.
Independent Samples: It is the samples that are independent whenever they are not related. Independent samples might or might not have similar sample size.
Pooled Estimate of the Variance: The weighted average of two sample variances when the variances are equivalent are termed as Pooled Estimate of Variance. The variances are ‘close enough’ to be considered equivalent, however not exactly similar, therefore this pooled estimate brings them altogether to determine the average variance.
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the way in which we compute the cost of inventories (or stock) is significant since the cost of inventories sold throughout a period will influence the calculation of profit and the remaining inventories held at the end of the period will influence the portrayal of wealth in the statement of financial position.
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The function of interim financial statements has significant implications for the measurement of interim profit.
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