The Measure of Central Tendency Appropriate for Nominal Data Is

question 70

Multiple Choice

The measure of central tendency appropriate for nominal data is the

• A) mode.
• B) standard deviation.
• C) mean.
• D) median.

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Definitions:

Operating Leverage

Operating Leverage is a measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed versus variable costs a company has.

Variable Cost

Operational expenses of a business that alter in accordance with the level of activity.

Tax Rate

A tax rate is the percentage at which an individual or corporation is taxed on their income or profits.

Degree of Operating Leverage

A financial metric that measures the sensitivity of a company's operating income to its sales.