10
QuizMultiple Choice

Tax Data — Quiz

Question 10 • Financial Math

A tax policy researcher examines the distribution of household incomes and observes 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 mean is greater than the median.
C
The distribution has a symmetrical shape.
D
The median is greater than the mean.

Explanation

In a left-skewed distribution, the long tail extends toward lower incomes. Those unusually low values pull the mean downward more than they affect the median, so the median is greater than the mean. Therefore, the best description is “The median is greater than the mean.”

AI-written and checked against the verified answer.

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