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Why are deciles useful in economics and finance?

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Question

Why are deciles useful in economics and finance?

Options

  • Only measure average income levels

  • Help in dividing populations for income and investment performance analysis

  • Used to determine the mean of a data set

  • Replace all other statistical tools

MCQ
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Solution

Help in dividing populations for income and investment performance analysis

Explanation:

Deciles are applied to study inequality, poverty, mutual fund performance, and other financial analyses.​

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