The Mean Is an Inappropriate Measure of Central Tendency When

question 29

Multiple Choice

The mean is an inappropriate measure of central tendency when the distribution is severely skewed because

• A)it is not the mathematical center of a skewed distribution.
• B)only 50% of the scores in a skewed distribution are near it.
• C)it does not accurately describe a skewed distribution.
• D)only the mode describes a skewed distribution.

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Definitions:

Discount Rate

A interest rate used to determine the present value of future cash flows.

Option Expense

The cost associated with granting stock options to employees, typically recognized over the vesting period.

Call Option

A financial contract that gives the holder the right but not the obligation to buy a specific amount of an asset at a specified price within a specific time period.

Spot Exchange Rates

The current exchange rate at which one currency can be exchanged for another for immediate delivery.