Here Is a Histogram of the Assets (In Millions of Dollars)of

question 86

Multiple Choice

Here is a histogram of the assets (in millions of dollars) of 71 companies.
Which of the following is the most appropriate re-expression of these data? Explain.
I II

III

• A)II,because the distribution is nearly symmetric.
• B)III,because the distribution more closely resembles the original histogram.
• C)I,because the distribution has a greater spread.
• D)I,because the distribution is nearly symmetric.
• E)I and II are equally appropriate,because re-expression using logs or square roots yields the same results.

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Definitions:

Long-term Assets

Assets that are expected to provide economic benefits over a period longer than one fiscal year, such as land, buildings, and equipment.

Short-term Investments

Financial assets that are expected to be converted into cash or sold within a year.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and so close to their maturity that they present insignificant risk of changes in value due to changes in interest rates.

Net Change

Net Change refers to the difference in a financial instrument's closing price between two consecutive trading sessions.