39
QuizMultiple Choice

Taxes — Test

Question 39 • 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 mean is greater than the median.
B
The distribution has a symmetrical shape.
C
The mean and median are approximately equal.
D
The median is greater than the mean.

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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