Below Is a Frequency Distribution of Earnings of 50 Contractors

question 40

Multiple Choice

Below is a frequency distribution of earnings of 50 contractors in a country. Regarding this distribution,which of the following is correct?

• A)The frequency distribution contains too many class intervals.
• B)The class interval limits are ambiguous.
• C)Too few classes were chosen.
• D)The class intervals are too wide.

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Definitions:

Normally Distributed Returns

Returns on investment that follow a bell-shaped curve, indicating that most of the returns are concentrated around the mean.

Standard Deviation

A measure of the dispersion of returns for a given security or market index, indicating the degree of volatility.

Passive Investment Strategies

Investment strategies that involve minimal buying and selling, often mirroring an index.

Active Trading Strategies

Investment strategies that involve frequent transactions, aiming to exploit short-term price movements to achieve profit.