The Variance of a Distribution of Means Is Less Than

question 69

Multiple Choice

The variance of a distribution of means is less than the original population variance because:

• A)it is based on fewer individuals than of the original population
• B)it is an estimate of the sample parameters rather than the original population
• C)extreme scores are less likely to affect a distribution of means
• D)a distribution of means actually has a larger variance than the original population

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Definitions:

Contribution Margin

The revenue remaining after deducting variable costs, which contributes to covering fixed costs and generating profit.

Direct Manufacturing Cost

Expenses directly associated with the production of goods, including direct materials and direct labor costs.

Indirect Manufacturing Cost

Costs related to production that are not directly tied to a specific product, such as maintenance, supervision, and utilities.

Incremental Manufacturing Cost

The additional cost incurred for the manufacturing of one more unit of a product.