For questions 11, 12, and 13 consider the following: Green Envy, Inc. (GE) is a public company that sells recycled goods. Unfortunately, 17 of their 30 stores are located on sites need to be environmentally cleaned-up during 2020, due to pollutants. As of December 31, 2019 two sets of estimates of future environmental clean-up costs exist (see the attached Excel file). The external auditor’s estimate appears in column 2, and management’s estimate appears in column 3. Actual clean-up costs incurred during 2020 for these 17 stores sites appear in column 4. The table is also available in the accompanying Excel file. Download table Column 1 Column 2 Column 3 Column 4 Cleanup Site # Auditor Estimate of Clean Up Expense December 31, 2019 Green Envy Management's Estimate of Clean Up Expense December 31, 2019 Actual Cleanup Costs Incurred Year During 2020 1 $ 1,938 $ 1,133 $ 1,446 2 $ 1,338 $ 992 $ 1,413 3 $ 1,462 $ 961 $ 1,472 4 $ 1,378 $ 1,103 $ 1,504 5 $ 1,389 $ 1,103 $ 1,498 6 $ 1,381 $ 999 $ 1,543 7 $ 1,115 $ 1,049 $ 1,361 8 $ 1,936 $ 1,075 $ 1,449 9 $ 1,790 $ 1,119 $ 1,527 10 $ 1,739 $ 1,030 $ 1,430 11 $ 1,629 $ 1,106 $ 1,415 12 $ 1,246 $ 1,095 $ 1,449 13 $ 1,514 $ 1,098 $ 1,489 14 $ 1,938 $ 1,122 $ 1,533 15 $ 1,107 $ 1,082 $ 1,353 16 $ 1,856 $ 964 $ 1,387 17 $ 1,114 $ 1,047 $ 1,516 Of the management’s estimate and the auditor’s estimate of environmental clean-up costs, which appears to be noisier?单项选择题
A
Management’s estimate
B
Auditor’s estimate
C
The two estimates are equally noisy.
D
Impossible to tell given information provided.
E
None of the above.
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