(I the Arithmetic Mean (Measure of Central Tendency) Cannot Be

question 127

Multiple Choice

(i. The arithmetic mean (measure of central tendency) cannot be determined if the distribution has an open-ended class. (ii) The measure of central tendency used to determine the average annual percent increase in sales from one time period to another is the geometric mean.
(iii) The smallest measure of central tendency in a positively skewed distribution is the mode.

• A) (i), (ii) and (iii) are all correct statements
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements, but not (i).
• E) (i), (ii) and (iii) are all false statements.

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Definitions:

Total Variable Cost

The sum of expenses that vary directly with the level of output, rephrasing it as the aggregate of costs that fluctuates in tandem with production volume.

Short-Run Supply Curve

A graphical representation showing the quantity of goods that producers are willing and able to sell at different prices, over a short period.

AVC Curve

A graph that shows the average variable costs associated with producing different levels of output, typically demonstrating how costs vary with output volume.

MC Curve

A graphical representation in economics that shows how the cost to produce one additional unit of a good (marginal cost) changes as production increases.