What would be the approximate shape of the following histogram?

Prepare for the Advanced Business Analytics Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

The shape of a histogram is determined by the distribution of the data it represents. A skewed left histogram, also known as negatively skewed, typically features a longer tail on the left side of the graph, indicating that there are a few low values in the dataset, while the majority of the values crowd towards the higher end of the scale.

In a skewed left distribution, the mean and median will be less than the mode, due to the cluster of higher values pulling the mean upwards. This might represent a situation where most outcomes are high, with a small number of lower outcomes, which can often occur in scenarios like income levels in a population where most individuals earn a higher income, but a few earn very little.

Thus, if the answer selected is that the histogram would be skewed left, it would suggest that the data presents a concentration of higher values, with some lower outliers affecting the overall shape of the distribution. Understanding this shape helps in making decisions based on the data analysis, particularly when dealing with outliers or interpreting the mean versus the median in any underlying analytical models.

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