The Histograms Show the Cost of Living,in Dollars,for 32 U

question 9

Multiple Choice

The histograms show the cost of living,in dollars,for 32 U.S.cities.The histogram on the left shows the cost of living for the 32 cities using bins $10 wide,and the histogram on the right displays the same data using bins that are $6 wide.For which of the histograms would you most strenuously insist on using an IQR rather than a standard deviation to summarize spread? Explain.

• A)The histogram on the right is most nearly symmetric and shows no outliers.That makes it the best candidate for summarizing with an IQR.
• B)The histogram on the left shows a low outlier.The standard deviation is sensitive to outliers,so we'd prefer to use the IQR for this one.
• C)The histogram on the right shows a high outlier.The standard deviation is sensitive to outliers,so we'd prefer to use the IQR for this one.
• D)The histogram on the left is most strongly skewed to the right.That makes it the best candidate for summarizing with an IQR.
• E)The histogram on the left is most nearly symmetric and shows no outliers.That makes it the best candidate for summarizing with an IQR.

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Definitions:

Monopolistically Competitive

A market structure where many companies sell products that are similar but not identical, allowing for significant competition.

Profit-Maximizing

A strategic goal of firms to achieve the highest possible profit given their costs of production and market demand.

Fixed Costs

Expenses that do not vary with the level of output, such as rent, salaries, and loan payments.

Monopolistically Competitive

A market structure characterized by many firms offering products that are similar but not identical, leading to differentiated competition.