Future Business Leaders of America (FBLA) Personal Finance Practice Test

Which of the following is not commonly used to evaluate stocks?

1. The New York Times Index

2. Mean

3. Median

4. Mode

The correct answer is: The New York Times Index

Choosing the New York Times Index as the option that is not commonly used to evaluate stocks is accurate because the New York Times Index is primarily a measure that tracks the performance of specific stocks or indices in the media context, rather than being a direct statistical or analytical tool for evaluating stocks. On the other hand, mean, median, and mode are statistical measures that are widely used in financial analysis. The mean provides the average price of a stock over a specified period, giving insights into its overall performance. The median, which indicates the middle value in a dataset, is useful for understanding the stock's performance without being skewed by extreme values. The mode identifies the most frequently occurring price in a set, which can highlight common price levels over a period. Each of these statistical tools allows analysts and investors to evaluate the stocks in a more quantitative manner, making their applications in stock evaluation clearer compared to an index like the New York Times Index.