A Study of Confidence Interval Financial Statements.

The article reports on a study which examined whether or not one particular form of probabilistic reporting had any material effect on responses to a hypothetical loan decision. A comparison was made of loan decisions made under the disclosure of financial statements and probabilistic statements. The study results did not indicate sufficient differences between the two groups to warrant the rejection of any hypothesis. On this basis it can be concluded that the respondents did not significantly alter their hypothetical loan decisions even though they received two different types of loan statements.