Which of the Following Statements Is Likely to Be True

question 132

Multiple Choice

Which of the following statements is likely to be true?

• A)The median personal income of California taxpayers would probably be near the mean.
• B)The interquartile range offers a measure of income inequality among California residents.
• C)For income, the sum of squared deviations about the mean is negative about half the time.
• D)For personal incomes in California, outliers in either tail would be equally likely.

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Definitions:

Accounts Payable Turnover

A financial efficiency ratio that measures how quickly a firm pays off its suppliers by dividing total purchases by average accounts payable.

Times

This term in a financial context often relates to ratios, such as the "times interest earned" ratio, which measures a company's ability to meet its debt obligations based on its earnings before interest and taxes.

Compensating Balance

A minimum account balance that a borrower must maintain as a condition for a bank loan, often to compensate the bank for extending credit.

Interest Rate

Interest Rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.