What Is the Major Disadvantage of the Range

question 44

Multiple Choice

What is the major disadvantage of the range?

• A) Based on ordinal data only
• B) Based on percentages
• C) Based on extreme values and ignores all other values
• D) Based on small values and ignores all other values

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Definitions:

Cash Flows

The overall volume of capital moving into and exiting a corporation, notably impacting its cash flow.

Interest Rates

The cost of borrowing money, usually expressed as a percentage of the amount borrowed, paid over a specific period.

Future Dollars

Money that is adjusted for anticipated inflation or deflation, representing its expected future value rather than its current value.

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance premiums.