For example, the firm might
overstate the income of a foreign subsidiary located in a low-tax country.
To the extent that improvements in quality are counted as price changes, the CPI will
overstate the true inflation rate; however, if price increases are counted as quality improvements, the CPI will understate inflation.
In a consumer climate where a marketing battle can be won or lost based on how much the PCR content is, and serious legal consequences can arise from misstatements of PCR content, no one can afford either to understate or
overstate their case.
An analyst has suggested that customers in Australia often
overstate their income in order to source mortgages.
The Government's own Statistics Commission has also warned ministers that they must not
overstate the improvements made in primary schools.
* Many companies traditionally have used "net income" (income after taxes)--a formula that encouraged some to
overstate revenue and understate expenses.
And today the authors of the survey admitted the initial 70% figure may
overstate the true price rise.
In the case of the overstatement of results, the year-end is an opportunity for employees or management to be tempted to
overstate assets such as stock balances, or process false sales.
It tends to
overstate poverty rates in the poorer parts of Canada and understate it in the more affluent areas.
As much as right-wingers
overstate the matter, there is an element of truth to the charge that contemporary liberals see oppression most clearly when it shines through the prism of racial or religious oppression.
"The real problem isn't monitoring tire pressure," says Merv Carse, president and COO of Cycloid, "it's maintaining the proper pressure within the tire." According to Carse, a survey conducted by Ford shows that 60% of drivers will ignore tire deflation alarms, and research from the National Highway Traffic Safety Administration (NHTSA) shows: about 10% of gas station air pumps don't work, less than 50% are equipped with pressure gauges, and 30%
overstate tire pressure.
Journalists routinely
overstate threats or hazards, or fail to put them in proper perspective.
Just like one really good exam grade can ruin the curve for the rest of the class, higher than average risks for one group can tend to
overstate the risks for the average individual and especially for those at lowest relative risk--young, healthy individuals.
As a result, its conclusions significantly
overstate the likely cost of resolving problem banks and contribute to misperceptions about the state of the industry's health.
Insisting that many measures of household debt
overstate the size of debt burdens, Greenspan pointed out that property values have also increased dramatically: "Taking into account this higher level of assets, all in all the household sector seems to be in reasonably good financial shape with only modest evidence of an increased level of household financial strain." He also dismissed concerns of a "speculative bubble" in the housing market by stating that it's harder to trade houses than stocks.