When a Distribution Is Negatively Skewed

question 54

Multiple Choice

When a distribution is negatively skewed,

• A) standard deviation overestimates risk.
• B) standard deviation correctly estimates risk.
• C) standard deviation underestimates risk.
• D) the tails are fatter than in a normal distribution.

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Definitions:

Asian

Pertaining to the largest and most populous continent, including a diverse range of cultures, languages, and countries.

Fortune

A large amount of wealth or prosperity, often used to describe the extensive assets of an individual or entity.

Poverty Rate

The percentage of the population that lives below the national poverty line, indicating the proportion of individuals living in poverty.

Billion

A numerical value represented as 1,000 million in the American short scale, commonly used to denote a significant quantity in financial and demographic contexts.