When a Distribution Is Positively Skewed

question 33

Multiple Choice

When a distribution is positively skewed,

• A) standard deviation overestimates risk.
• B) standard deviation correctly estimates risk.
• C) standard deviation underestimates risk.
• D) the tails are fatter than in a normal distribution.

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Definitions:

Most Profitable

Referring to the activity, product, or segment that generates the highest profit margin or net income compared to others.

ISO 9000

An international standard that specifies criteria for a quality management system, demonstrating an organization's ability to consistently provide products and services that meet customer and regulatory requirements.

Quality Products

Goods that meet predetermined standards of excellence, including durability, usability, and performance.

Quality Control

The processes and procedures put in place to ensure that products or services meet certain standards and criteria of quality.