The distribution of profits of a company follows:
Options
AJ-shaped frequency curve
BU-shaped frequency curve
CBell-shaped frequency curve
DAny of these
For any discrepancies in this question, email contact@cadada.in
Statistical Representation of DataMCQMTP Dec 22 - Series IQuestion 2744 of 295
All Questions Correct Answer
✅ Option c — Bell-shaped frequency curve
All Options:
- AJ-shaped frequency curve
- BU-shaped frequency curve
- CBell-shaped frequency curve
- DAny of these
Ad
Ad
Detailed Solution & Explanation
In corporate economics, if we study the profits of a large number of companies within an industry or economy:
- Most companies will earn a moderate, average level of profit, clustering around a central mean.
- A small number of highly successful companies will earn extremely high profits, forming a tapering tail on the right.
- A small number of struggling companies will earn extremely low profits or experience losses, forming a tapering tail on the left.
Graphically, when the number of companies (frequency) is plotted against their profit levels, the resulting curve starts low, rises to a single peak in the center, and tapers off at both extremes. This is characteristic of a **Bell-shaped frequency curve**.
- A **U-shaped curve** would imply that most companies make either huge profits or huge losses, with very few in the middle, which is economically incorrect.
- A **J-shaped curve** would mean profits continuously increase without bound, which is also unrealistic.
Hence, **Option C** is the correct answer.
About This Chapter: Statistical Representation of Data
Paper
Paper 3: Quantitative Aptitude
Weightage
2-4 Marks
Key Topics
Data, Frequency Distribution, Graphical Representation
This chapter covers Data, Frequency Distribution, Graphical Representation and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.
View Official ICAI SyllabusExam Strategy Tip
This topic carries 2-4 Marks weightage. Focus on understanding core concepts rather than memorizing.
Related Comparison Tables
More Questions from Statistical Representation of Data
Ready to Master Statistical Representation of Data?
Practice all 295 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.
Start Practicing — It's Free