Showing posts with label Essentials of Statistics for Business and Economics Chapter 3. Show all posts
Showing posts with label Essentials of Statistics for Business and Economics Chapter 3. Show all posts

The numerical value of the variance

The numerical value of the variance


a. is always larger than the numerical value of the standard deviation
b. is always smaller than the numerical value of the standard deviation
c. is negative if the mean is negative
d. can be larger or smaller than the numerical value of the standard deviation


Answer: d. can be larger or smaller than the numerical value of the standard deviation

The coefficient of correlation

The coefficient of correlation


a. is the same as the coefficient of determination
b. can be larger than 1
c. cannot be larger than 1
d. cannot be negative


Answer: c. cannot be larger than 1

Positive values of covariance indicate

Positive values of covariance indicate


a. a positive variance of the x values
b. a positive variance of the y values
c. the standard deviation is positive
d. positive relation between the independent and the dependent variables


Answer: d. positive relation between the independent and the dependent variables

The variance of the sample

The variance of the sample


a. can never be negative
b. can be negative
c. cannot be zero
d. cannot be less than one


Answer: a. can never be negative

The symbol σ2 is used to represent

The symbol σ2 is used to represent


a. the variance of the population
b. the standard deviation of the sample
c. the standard deviation of the population
d. the variance of the sample


Answer: a. the variance of the population

The symbol σ is used to represent

The symbol σ is used to represent


a. the variance of the population
b. the standard deviation of the sample
c. the standard deviation of the population
d. the variance of the sample


Answer: c. the standard deviation of the population

The variance can never be

The variance can never be


a. zero
b. larger than the standard deviation
c. negative
d. smaller than the standard deviation


Answer: c. negative

The coefficient of variation is

The coefficient of variation is




a. the same as the variance
b. the standard deviation divided by the mean times 100
c. the square of the standard deviation
d. the mean divided by the standard deviation


Answer: b. the standard deviation divided by the mean times 100

The sample variance

The sample variance




a. is always smaller than the true value of the population variance
b. is always larger than the true value of the population variance
c. could be smaller, equal to, or larger than the true value of the population variance
d. can never be zero


Answer: c. could be smaller, equal to, or larger than the true value of the population variance

When should measures of location and dispersion be computed from grouped data rather than from individual data values?

When should measures of location and dispersion be computed from grouped data rather than from individual data values?




a. as much as possible since computations are easier
b. only when individual data values are unavailable
c. whenever computer packages for descriptive statistics are unavailable
d. only when the data are from a population


Answer: b. only when individual data values are unavailable