The Income at the 85^th Percentile for an Econogreat Is

question 16

Multiple Choice

The income at the 85^th percentile for an Econogreat is $100,000 and the income at the 15^th percentile is $8,500.Which of the following is true?

• A)The incomes of those at the 85^th percentile of the income distribution for Econogreat are 8.l5 percent as large as the incomes of those at the 15^th percentile.
• B)The incomes of those at the 85^th percentile of the income distribution for Econogreat are 1.5 percent as large as the incomes of those at the 15^th percentile.
• C)The incomes of those at the 85^th percentile of the income distribution for Econogreat are 11.8 times as large as the incomes of those at the 15^th percentile.
• D)The incomes of those at the 85^th percentile of the income distribution for Econogreat are 1.5 times as large as the incomes of those at the 15^th percentile.

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Definitions:

Purchase Assets

The act of acquiring ownership or a controlling interest in physical or intangible items that have value, for operational or investment purposes.

Real Assets

Physical or tangible assets such as real estate, commodities, and natural resources.

Future Cash Flows

Projections of the amount of money that is expected to be generated by an investment in the future.

Financial Assets

Assets that derive value from a contractual claim, such as bank deposits, stocks, bonds, and derivatives.