Arm's Length Principle

The EdgarStat Blog explores issues in transfer pricing and application of the transactional net margin method (TNMM or CPM in the US) and other enterprise profit-based methods. Blog writings reflect the position of the authors and are not the opinion of EdgarStat.

Interquartile Range is an Unreliable Measure of the Arm's Length Range
November 13, 2023 by Ednaldo Silva

Quartiles are the most elementary form of univariate (single variable) data summary, because no statistical technique beyond sorting and slicing (tagging) of the data is employed. Distributions of profit indicators have long tails, suggesting that the Median is a good measure for only 50% of the dataset.

Topics: Arm's Length Principle TNMM/CPM

Read more
Headquarters
EdgarStat LLC
5425 Wisconsin Ave., Suite 600
Chevy Chase, MD, 20815-3577
USA
Customer Support
support@edgarstat.com