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Ratio analysis is a subset of trend analysis that can be used to compare relationships among financial statements accounts over time to find the fakes.

-True
-False

User Isurusndr
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Final answer:

Ratio analysis is not designed to find fakes but to assess the financial health of a company; it's unrelated to the F Distribution and F Ratio used in ANOVA, which compares the means of various groups.

Step-by-step explanation:

The statement that ratio analysis is a subset of trend analysis used to find fakes is false. Ratio analysis is a financial analysis tool used to evaluate relationships among various financial statement accounts, but not specifically to find fakes. Instead, it helps in assessing the financial health and performance of a company over time. On the other hand, the F Distribution and the F Ratio are statistical measures used in Analysis of Variance (ANOVA), which compares means of a response variable for several groups to analyze variance within and between these groups. The F statistic is calculated using the ratio of the variance estimates, with the numerator degrees of freedom being the number of groups minus one and the denominator degrees of freedom being the total number of observations minus the number of groups.

User Rafael De Castro
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