The Preferred Measure of Central Tendency in a Normally Shaped

question 52

Multiple Choice

The preferred measure of central tendency in a normally shaped distribution is

• A) the standard deviation.
• B) the mode.
• C) the median.
• D) the mean.

---

Definitions:

Residual Income

Income that remains after all operating expenses and costs of capital have been deducted from net operating income.

Profit Centre

A segment of a business that is responsible for both generating revenue and controlling costs, thereby directly influencing its own profitability.

Residual Income

Earnings generated beyond the minimum rate of return expected by a company or its investors, often used as a performance measure.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage.