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:

Inward

Refers to movements or directions towards the inside or center of something.

Expansionary Gap

A situation where the actual output of an economy exceeds its potential output at full employment, often leading to inflation.

Inflationary Pressure

The upward pressure on prices that may arise from factors such as increased demand or rising costs, leading to inflation.

Seasonal Unemployment

Unemployment resulting from seasonal variations in demand or supply of labor, often seen in industries like agriculture or tourism.