An Analyst Gathered the Following Information About the Net Profit

question 34

Multiple Choice

An analyst gathered the following information about the net profit margins of companies in two industries: Compared with the other industry,the relative dispersion of net profit margins is smaller for Industry:

• A)B,because it has a smaller mean deviation.
• B)B,because it has a smaller range of variation.
• C)A,because it has a smaller standard deviation.
• D)A,because it has a smaller coefficient of variation.

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Definitions:

Nominal GDP

The market value of all final goods and services produced within a country in a year, measured in current prices without adjusting for inflation.

Economy Growth

An increase in the production of goods and services in an economy over a period of time, often measured by the growth of the Gross Domestic Product (GDP).

Inflation Rate

The progression rate at which the cost of consumer goods and services climbs, thereby eroding purchasing potential.

Price Level

The Price Level is a measure of the average prices of goods and services in an economy at a specific time.