CFA Level 1 Exam: Mean, Range, and Distribution

Mean, Range, and Distribution

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Question

A distribution has a mean of 7 and a range of -100 to +50. The distribution is ________.

Answers

Explanations

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A. B. C. D.

D

The range of values is larger to the left of the mean. Hence, the distribution is left-skewed.

To determine the characteristics of the distribution, let's break down the given information:

  1. Mean: The mean of a distribution represents the average value of the data points. In this case, the mean is given as 7.

  2. Range: The range of a distribution is the difference between the maximum and minimum values. Here, the range is -100 to +50.

Given these details, we can analyze the characteristics of the distribution:

  1. Mean: The mean of 7 indicates the central tendency of the data. It represents the balance point around which the data points tend to cluster.

  2. Range: The range provides information about the spread or dispersion of the data. A range of -100 to +50 indicates that the data points span a wide interval, extending from negative values to positive values.

Based on the given mean and range, we can conclude that the distribution is incomplete. An incomplete distribution refers to a situation where the data points are limited or missing in certain areas. In this case, the range extends from -100 to +50, indicating that the data points do not cover the entire possible range of values. Therefore, answer choice A, "incomplete," is the correct answer.

The terms "right skewed," "defective," and "left skewed" refer to different types of distributions based on the shape of the data. However, the given information does not provide any indication about the shape of the distribution, so none of these terms apply.