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:

Normal Distribution

This refers to a probability distribution where symmetry around the mean indicates higher frequency of data points near the mean than those far from it.

Average Annual Revenue

This refers to the amount of money a company earns in a year, on average, from its operations.

Standard Deviation

A metric indicating the extent to which data points diverge from the mean, showing the distribution's spread.

Average Annual Revenue

The mean income generated by a business, entity, or asset within one fiscal year.