Answer: Predictive analytics
Explanation:
For the organization to have an estimate close to the exact amount of future purchase, the organization would need to conduct a predictive analytics. In predictive analytics, the past outcomes and present outcomes can be used to predict future outcomes.
<span>Given:
check written year 1 year 2 year 3
yes 225 175 125
no 275 325 375
</span><span>The expected number of shoppers who pay by check in year 1 if there is no difference in the proportion of shoppers who pay by check among the three years is 175.
Each year has 500 customers, and its proportion of customers paying in check gradually decreased from 45% to 25%. If there is no difference in proportion, I am assuming that the data is averaged. Thus, (225+175+125) / 3 = 525 / 3 = 175.</span>
Answer:
Warranty Expense $3,600 (debit)
Warranty Provision $3,600 (credit)
Explanation:
There is no option on the customer to take the warranty or not.Thus, this type of warranty is called an Assurance type Warranty.
Assurance type Warranties are treated in terms of IAS 37 Provisions as follows :
Warranty Expense $3,600 (debit)
Warranty Provision $3,600 (credit)
Warranty Expense = $120,000 × 3% = $3,600