A bakery chain has a statistical model that can be used to predict daily sales at individual stores based on a direct relationship to the cost of ingredients used and an inverse relationship to…

Question

Options

• AOn a rainy day, total sales are greater than expected when compared to the cost of ingredients
• BOn a sunny day, total sales are less than expected when compared to the cost of ingredients used.
• CBoth total sales and cost of ingredients used are greater than expected.
• DBoth total sales and cost of ingredients used are less than expected.

• A
  65% (35)
• B
  4% (2)
• C
  9% (5)
• D
  22% (12)

Explanation

In the scenario provided, the bakery chain's statistical model predicts that daily sales should have an inverse relationship with rainy days, meaning that on rainy days, sales are generally expected to be lower. However, if an auditor notices that on a rainy day, total sales are greater than expected when compared to the cost of ingredients used, this could indicate potential employee theft of food. The reasoning is that if sales are unusually high despite weather conditions that typically depress sales, it may be that the reported sales are inflated or that ingredients are being used without corresponding sales being recorded, which could suggest theft.

No community discussion yet for this question.