State Which Type of Average, the Mean, Median, or Mode

question 34

Essay

State which type of average, the mean, median, or mode, would be most appropriate in the situation described. Explainyour thinking.
-A state governor is planning a tax cut. The governor is to announce the average amount
that people would save if the tax cut were to take effect. If the governor wants to
exaggerate the benefit of the tax cut, which average would he quote?

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Definitions:

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.

Growth Companies

Companies characterized by their potential to grow their revenues and earnings at a faster rate than the average business within their industry or market.

Property, Plant, And Equipment

Tangible long-lived assets used in the operations of a business, such as machinery, buildings, and vehicles.

Operating Cash Flows

Refers to the cash generated from a company's core business operations, excluding financing and investing activities.