The Advantage of Using the Interquartile Range Versus the Range

question 107

Multiple Choice

The advantage of using the interquartile range versus the range as a measure of variation is:

• A) it is easier to compute.
• B) it utilizes all the data in its computation.
• C) it gives a value that is closer to the true variation.
• D) it is less affected by extremes in the data.

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Definitions:

Average Total Assets

A financial metric that represents the average value of all the assets owned by a company over a specific time period.

Operating Expenses

The costs associated with running a day-to-day business operation, excluding the cost of goods sold.

Residual Income

The income that remains after all personal debts and expenses have been paid, or in business, the net income after deducting cost of capital from operating profit.

Investment Center

A business segment within a company for which the manager has control and responsibility over cost, revenue, and investments.