Below Is a Histogram of Prices for a Sample Homes

question 187

Multiple Choice

Below is a histogram of prices for a sample homes recently sold in a metropolitan area in the southeastern region of the U.S.
Histogram:
Home Prices

Which of the following statements is true?

• A)The mean would be more appropriate than the median to describe the center of this distribution.
• B)This distribution is fairly symmetric.
• C)This distribution is right skewed.
• D)This distribution is left skewed.
• E)Both A and C

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a stock at a predetermined price within a certain period.

Vesting Period

The period of time before shares are unconditionally owned by an employee in an employee stock option plan.

GAAP

General Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any jurisdiction, including the detailed standards and rules developed by the Financial Accounting Standards Board in the U.S.