What Is Meant by the Term 'Standard Deviation

question 35

Multiple Choice

What is meant by the term 'standard deviation'?

• A) The square of the variance
• B) The dispersion around the expected value
• C) The square root of the sum of the probabilities
• D) The square root of the sum of the probabilities of each outcome

---

Definitions:

Cost of Capital

The return rate that a company must earn on its projects to maintain its market value and attract funds.

Variable Cost

Costs that change in proportion to the level of production or sales, such as materials and labor.

Capacity

The maximum amount of work that an organization, system, or machine can produce in a given period.