If the Bars of a Histogram Represent the Proportion of the Total

question 51

Multiple Choice

If the bars of a histogram represent the proportion of the total count that falls into each interval, what must the heights of the bars sum to?

• A)The total number of numbers in the data set.
• B)One.
• C)1 divided by the total number of intervals used in the histogram.
• D)Not enough information to tell.

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Definitions:

Real Interest Rate

The interest rate that has been adjusted to remove the effects of inflation, reflecting the real cost of funds to the borrower and the real yield to the lender or investor.

Nominal Net Cash Flow

The total amount of cash that flows into and out of a business, not adjusted for inflation.

Inflation Rate

The percentage increase in the general level of prices for goods and services in an economy over a period of time.

NPV

Net Present Value; a financial calculation used to determine the value of a series of future cash flows by discounting them to the present using a specific rate.