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The distribution of profits of a company follows
  • a)
    J-shaped frequency curve
  • b)
    U-shaped frequency curve
  • c)
    Bell-shaped frequency curve
  • d)
    Any of these
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
The distribution of profits of a company followsa)J-shaped frequency c...
Bell-shaped frequency curve is the correct answer as it represents the normal distribution of data, which is a common occurrence in many natural and human-made systems.

Explanation:

What is a frequency curve?
A frequency curve is a graphical representation of the distribution of data values in a dataset. It shows the frequency of occurrence of each value or range of values in the dataset.

What is a bell-shaped frequency curve?
A bell-shaped frequency curve, also known as a normal distribution curve, is a specific type of frequency curve that has a symmetrical, bell-shaped appearance. It is characterized by a peak at the center of the curve, with the frequency of values decreasing as you move away from the peak in either direction.

Why do profits of a company follow a bell-shaped frequency curve?
The profits of a company are influenced by various factors such as demand, supply, competition, market conditions, economic policies, etc. These factors vary from time to time and from company to company, resulting in a wide range of profit values. However, when you plot these profit values on a frequency curve, you will notice that they tend to cluster around a central value, with fewer values on either extreme. This clustering of values around the central value is what creates the bell-shaped curve.

What are the characteristics of a bell-shaped frequency curve?
A bell-shaped frequency curve has the following characteristics:

1. Symmetry: The curve is symmetric around the center point, which represents the mean or average value of the dataset.

2. Peak: The highest point on the curve represents the most common or frequent value in the dataset.

3. Tails: The tails of the curve represent the less common or extreme values in the dataset.

4. Standard deviation: The spread of the curve is determined by the standard deviation of the dataset. The wider the curve, the higher the standard deviation.

Conclusion:
In conclusion, the profits of a company follow a bell-shaped frequency curve because they exhibit a normal distribution of values around a central point. This curve helps us to understand the distribution of profits and make predictions about future profits based on past data.
Free Test
Community Answer
The distribution of profits of a company followsa)J-shaped frequency c...
Initially profit seems to increase and at later time it stabilize and then declines gradually
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