(I If a Distribution Is Highly Skewed, the Mean (Measure

question 2

Multiple Choice

(i. If a distribution is highly skewed, the mean (measure of central tendency) should be avoided.
(ii. A characteristic of the population is called a statistic.
(iii) A sample revealed that the ages of musicians playing in small local combos are 36, 29, 37, 32,
36 and 75. The median is the most appropriate measure of central tendency to represent the ages
Of the musicians.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements, but not (i).
• E) (i), (ii) and (iii) are all false statements.

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Definitions:

Rights Offering

A method by which a company raises additional capital by giving existing shareholders the right to buy new shares at a discount.

Subscription Price

The fee that investors pay when subscribing to a new issue of securities.

Market Price

This refers to the current price at which an asset or service can be bought or sold in the market.

Dutch Auction

A method for pricing shares (or other assets) where the price is reduced until all offered shares are sold to bidders, effectively finding the market clearing price.