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:

Market Rate

The prevailing interest rate available in the marketplace on investments or loans.

Sinking Funds

A fund formed by periodically setting aside money for the gradual repayment of a debt or replacement of a wasting asset over time.

Bondholders

Individuals or entities who hold the debt securities issued by corporations or governmental entities, thereby lending them money in return for interest payments and the repayment of principal.

Interest Rates

This refers to the cost of borrowing money or the reward for saving money, expressed as a percentage of the principal over a period.