An Entrepreneur Should Always Project at Least Two Scenarios for Financial

question 35

True/False

An entrepreneur should always project at least two scenarios for financial forecasting and budgeting: best case and worst case.

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Definitions:

Standard Deviations

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean of the set.

Variance

Variance measures the dispersion of a set of data points around their mean value, indicating how spread out the data is.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is calculated as the square root of the variance.

Coefficient Of Variation

A measure of relative variability calculated as the standard deviation divided by the mean, often expressed as a percentage.