American Institute of Certified Planners (AICP) Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Discover strategies to excel in the AICP Exam. Use flashcards and multiple-choice questions with hints and explanations. Gain confidence and readiness for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is indicated by a normal distribution?

The data is spread out unevenly
The data is symmetrical around the mean
The data has a high variance
The data contains multiple modes

The correct answer is: The data is symmetrical around the mean

A normal distribution is characterized by its symmetrical shape, centered around the mean. This means that in a normal distribution, the frequencies of data points are equally distributed to the left and right of the mean, forming a bell-shaped curve. As a result, the mean, median, and mode of the data are all equal, reflecting this symmetry. In contrast, the other options describe characteristics that are not representative of a normal distribution. For instance, a data set that is spread out unevenly would likely show a skewed distribution rather than a normal one. High variance suggests that there is a wide spread of values around the mean, which would also deviate from the bell-shaped curve associated with a normal distribution. Similarly, the presence of multiple modes indicates a distribution that is multimodal, whereas a normal distribution has a single peak, meaning it only has one mode.