A management team wants another column added to the monthly categories revenue report that includes more appropriate descriptive statistics. Which of the following best describes the change in…

The correct answer is C. Percentage. Percentage change is the most intuitive and business-appropriate statistic for communicating how revenue has shifted between categories or periods (e.g., +12% or -5%). It normalizes raw dollar differences so stakeholders can compare categories of different magnitudes on equal…

Data Analysis

Question

A management team wants another column added to the monthly categories revenue report that includes more appropriate descriptive statistics. Which of the following best describes the change in dollar value?

Options

AVariance
BRange
CPercentage
DStandard deviation

How the community answered

(46 responses)

A
2% (1)
B
4% (2)
C
93% (43)

Explanation

Percentage change is the most intuitive and business-appropriate statistic for communicating how revenue has shifted between categories or periods (e.g., +12% or -5%). It normalizes raw dollar differences so stakeholders can compare categories of different magnitudes on equal footing. Variance and standard deviation (A, D) measure dispersion around a mean and are harder for non-technical audiences to interpret in a revenue context. Range (B) shows the spread between the minimum and maximum values, which does not directly describe change over time or between categories.

Topics

#Descriptive statistics#Business reporting#Percentage change#Data interpretation

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