What is the advantage of the standard deviation over the average deviation?
A) Because the standard deviation requires squaring of deviations before further computation, positive and negative deviations do not cancel out.
B) Because the standard deviation does not require squaring of deviations, it is easy to tell whether deviations are positive or negative.
C) The standard deviation removes the units from the calculation, and delivers a pure number.
D) The standard deviation expresses the average deviation in percentage terms, so that different choices can be more easily compared.
E) The standard deviation transforms subjective probabilities into objective ones so that calculations can be performed.
A
You might also like to view...
Under perfect competition, if marginal cost is below price, then a producer can benefit from increasing his or her output.
Answer the following statement true (T) or false (F)
If a tax is levied on the sellers of a product, then there will be a(n)
a. downward shift of the demand curve. b. upward shift of the demand curve. c. decrease in quantity demanded. d. increase in quantity demanded.
If consumers have a long time to respond to an increase in electricity prices their demand is likely to be ________ than if they are only given a short time.
A. no different B. higher C. more elastic D. less elastic
When would a currency speculator buy a put option that gives the owner the right to sell the foreign currency at the specified (exercise) price in the future. When would it be worth exercising the option? What are some advantages and disadvantages of currency options compared to forward exchange contracts?
What will be an ideal response?