In a Campaign Debate Over the Level of Prosperity in the State

question 3

Multiple Choice

In a campaign debate over the level of prosperity in the state, the incumbent governor says: "average income is $53,000." His opponent responds "the average citizen earns only $38,000." Both statements are true. This is possible because________.

• A) the governor is citing the median.
• B) the opponent is using the mode.
• C) the opponent is using the mean.
• D) the governor is using the mean.

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Definitions:

Call Option

An economic agreement that provides the bearer the option, without the necessity, to purchase a share, bond, commodity, or different asset at an agreed-upon price during a determined timeframe.

Derivative Security

A financial security whose value is determined by or derived from an underlying asset or group of assets, such as stocks, bonds, commodities, or market indices.

Fixed Price

A contractually agreed-upon price for goods or services that is not subject to any changes in cost.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, often represented by the yield on government securities.