Which of the Following Is Not a Characteristic of the Lognormal

question 16

Multiple Choice

Which of the following is not a characteristic of the lognormal distribution?

• A) Some value is the most likely.
• B) It is negatively skewed (above the mean more likely).
• C) Values cannot fall below zero.
• D) Extreme values (high end only) are possible, but rare.
• E) All of the answers choices are characteristic of the lognormal distribution.

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Definitions:

Operating Income

Earnings from a company's core business operations, excluding expenses and revenues from investments and other non-operational activities.

Variable Costing

An accounting method that only allocates variable production costs to products, excluding fixed costs.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.

Operating Income

The profit realized from a business's core operating activities, excluding costs and revenues from non-operating activities.