When Deciding Which Type of Measure of Central Tendency Is

question 12

Multiple Choice

When deciding which type of measure of central tendency is appropriate,we consider the scale of measurement used to measure the

• A)variability of the distribution.
• B)mean.
• C)independent variable.
• D)dependent variable.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in assessing investment opportunities.

Compounded Annually

Describes how interest on an investment or loan is calculated once a year, with each year's interest based on the principal plus any previously earned interest.

Return

The gain or loss on an investment over a specified period, expressed as a percentage increase over the original investment cost.

Invest

Allocating resources, usually financial, with the expectation of generating an income or profit.