When a Distribution Is Positively Skewed,____________

question 63

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
• E)none of the above

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Definitions:

Deadweight Loss

describes a loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is distorted by external factors like taxes or subsidies.

Demand Curve

represents the relationship between the price of a good and the quantity of that good consumers are willing to purchase.

Monopoly Power

Monopoly Power describes the ability of a company or entity to control the price and supply of a product or service, due to the lack of significant competition.

Lump-Sum Payment

A single payment made at a particular time, as opposed to multiple payments over time.