The Range Can Be Problematic as a Measure of Variability

question 14

Multiple Choice

The range can be problematic as a measure of variability because it

• A) only considers scores in the middle 50% of the distribution.
• B) only considers the most extreme scores in the distribution.
• C) only considers the high scores in the distribution.
• D) only considers the low scores in the distribution.

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Definitions:

Average Sale Period

The average time it takes for a company to complete a sale, from initiating contact with a client to closing the deal.

Cost of Goods Sold

Direct financial responsibilities stemming from the fabrication of goods a company sells, incorporating materials and labor.

Inventory

Items held by a company awaiting sale or use in production, including raw materials, work-in-progress, and finished goods.

Times Interest Earned

A financial metric that measures a company's ability to meet its debt obligations by comparing its earnings before interest and taxes (EBIT) to its annual interest expense.