Given the Histogram Below for a Set of Data, Which

question 56

Multiple Choice

Given the histogram below for a set of data, which of the following statements is true?

• A) The five-number summary would describe the data better than the mean and standard deviation.
• B) The mean and standard deviation would describe the data better than the five-number summary.
• C) Either the mean and standard deviation or the five-number summary would be equally good to describe the data.
• D) Neither the mean and standard deviation nor the five-number summary could be used to describe the data.

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Definitions:

Profitability Index

The Profitability Index is a financial metric that compares the present value of future cash flows generated by a project to the initial investment, used to assess the attractiveness of an investment.

Average Accounting Return

A method of measuring an investment's profitability by comparing its average net income to its average book value.

Return on Assets

A profitability ratio that measures how efficiently a company is using its assets to generate profit, calculated by dividing net income by total assets.

Shareholder Wealth

The total value of an investment in a company's stock, encompassing capital gains and dividends received over time.