What Is the Advantage of the Standard Deviation Over the Average

question 43

Multiple Choice

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.

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Definitions:

Limited Partnership

A business arrangement where at least one partner is a general partner who takes on unlimited liability, while others are limited partners whose liability is restricted to their investment in the partnership.

Federal Law

Laws that have been enacted by the national government of a country and which apply to the entire nation, superseding local or state laws where conflicts occur.

International Commerce

Refers to the exchange of goods, services, and capital across international borders or territories.

Certificate of Limited Partnership

A legal document filed with a state governmental body that officially recognizes a limited partnership's existence.