A Student at a Local University Took a Total of 20

question 13

Multiple Choice

A student at a local university took a total of 20 exams during freshman year.The student recorded the exam scores as percentages and created the following stem-and-leaf display.The lower stem contains leaves with the digits 0-4 and the upper stem contains leaves with digits 5-9.In addition to describing the distribution,give a reason to account for the shape of this distribution.
Key:
9 | 3 = 93%

• A)The distribution of exam scores is skewed to the left.Typically,the student scored 94% on exams,and the exam scores are tightly clustered in the 90s.Two exam scores are outliers,when the student scored below 65%.It is possible that the student had a difficult time with one of his or her courses in that year.Regardless of the possible reasons,these two scores were unusual compared to the student's other exam scores.
• B)The distribution of exam scores is skewed to the left.Typically,the student scored 95% on exams,and the exam scores are tightly clustered in the 90s.Two exam scores are outliers,when the student scored below 65%.It is possible that the student had a difficult time with one of his or her courses in that year.Regardless of the possible reasons,these two scores were unusual compared to the student's other exam scores.
• C)The distribution of exam scores is skewed to the right.Typically,the student scored 95% on exams,and the exam scores are tightly clustered in the 90s.Two exam scores are outliers,when the student scored below 65%.It is possible that the student had a difficult time with one of his or her courses in that year.Regardless of the possible reasons,these two scores were unusual compared to the student's other exam scores.
• D)The distribution of exam scores is skewed to the left.Typically,the student scored 95% on exams,and the exam scores are tightly clustered in the upper 80s and lower 90s.Two exam scores are outliers,when the student scored below 65%.It is possible that the student had a difficult time with one of his or her courses in that year.Regardless of the possible reasons,these two scores were unusual compared to the student's other exam scores.
• E)The distribution of exam scores is skewed to the left.Typically,the student scored 95% on exams,and the exam scores are tightly clustered in the 90s.

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Definitions:

Capital Rationing

The process of selecting profitable projects under the constraint of limited available investment funds.

Internal Rate of Return

A financial metric used to evaluate the profitability of an investment, calculated as the discount rate that makes the net present value of all cash flows from the investment equal to zero.

Hurdle Rate

Hurdle Rate is the minimum acceptable return on investment or project that a business requires before it considers it viable or proceeds with it.

Accounting Rate of Return

The return on an investment calculated by dividing the average annual profit by the initial investment cost, typically used to assess the profitability of potential investments.