A Disadvantage of Using Grouping (A Frequency Table) with Sample

question 117

Multiple Choice

A disadvantage of using grouping (a frequency table) with sample data is that

• A) calculations involving central tendency and variation are more complicated than central tendency and variation calculations based on ungrouped data.
• B) the descriptive statistics are less precise than the descriptive statistics obtained using ungrouped data.
• C) the interpretation of the grouped data descriptive statistics is meaningless.
• D) it is much more difficult to summarize the information than it is with the ungrouped data.

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Definitions:

Monopolistic Competitor

A firm operating in a market with many competitors but differentiating its product or services from others, thus having some degree of market power.

Price Discrimination

A strategy where a company sells the same product at different prices to different customers, not based on costs but typically on willingness or ability to pay.

Monopolistically Competitive Industry

An industry characterized by many firms offering products that are similar but not perfect substitutes, leading to competitive markets where companies compete on product differentiation, prices, and marketing.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good demanded by consumers.