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practice testMultiple Choice

Practice Test

Question 1 • Advanced Financial Algebra

A tax consultant analyzes the distribution of income tax payments and finds it is highly skewed to the right. Which statement best describes the characteristics of this distribution?

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

Explanation

In a distribution skewed to the right, a small number of very high values stretch the tail toward the right. These high values pull the mean upward more than they affect the median, so the mean is greater than the median. Therefore, the best choice is “The mean is greater than the median.”

AI-written and checked against the verified answer.

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