19
QuizMultiple Choice

Financial Statistics and Research — Test

Question 19 • Advanced Financial Algebra

A financial analyst studies the distribution of taxable incomes among a group of individuals and finds it is highly skewed to the left. Which statement best describes the characteristics of this distribution?

Answer
A
The mean and median are approximately equal.
B
The distribution has a symmetrical shape.
C
The median is greater than the mean.
D
The mean is greater than the median.

Explanation

In a left-skewed distribution, the long tail extends toward lower values and pulls the mean downward. The median is less affected by extreme values, so it is typically greater than the mean. Therefore, “The median is greater than the mean” is the best description.

AI-written and checked against the verified answer.

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