20
QuizMultiple Choice

Tax Data — Quiz

Question 20 • 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 median is greater than the mean.
B
The distribution has a symmetrical shape.
C
The mean is greater than the median.
D
The mean and median are approximately equal.

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.”

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