A Disadvantage of Using Grouping (A Frequency Table) with Sample

question 117

Multiple Choice

A disadvantage of using grouping (a frequency table) with sample data is that

• A) calculations involving central tendency and variation are more complicated than central tendency and variation calculations based on ungrouped data.
• B) the descriptive statistics are less precise than the descriptive statistics obtained using ungrouped data.
• C) the interpretation of the grouped data descriptive statistics is meaningless.
• D) it is much more difficult to summarize the information than it is with the ungrouped data.

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Definitions:

Individual Profits

The income that an individual receives from their investment or entrepreneurial activity after deducting all costs.

Collude

To engage in a secret agreement or cooperation, especially with the intention of cheating or deceiving others.

Cartel

An association of independent businesses or countries that work together to control production, pricing, and marketing of goods to monopolize a market.

Monopoly

A firm that is the sole seller of a product without any close substitutes.