Which Average Is Appropriate for Nominal Data

question 12

Multiple Choice

Which average is appropriate for nominal data?

• A) Mean
• B) Median
• C) Mode

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Definitions:

Account Type

A classification used in accounting to differentiate various types of financial records, such as assets, liabilities, equity, revenues, and expenses.

Profitable

A financial condition where income exceeds expenses resulting in a net gain.

Accounting Equation

The fundamental formula in accounting that states that assets equal liabilities plus equity.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing owners' claims on the business.