7
QuizMultiple Choice

Taxes — Test

Question 7 • Financial Math

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