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.
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