When Should Measures of Location and Dispersion Be Computed from Grouped

question 105

Multiple Choice

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

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Definitions:

Direct Labor Time Variance

The difference between the actual time taken to perform work and the estimated standard time, adjusted for units produced.

Standard Costs

Predetermined costs to manufacture a product or deliver a service, used for budgeting and performance evaluation.

Direct Materials Price Variance

The difference between the actual cost of direct materials used in production and the expected (or standard) cost.

Actual Costs

The genuine expenses that are incurred in the production or acquisition of goods and services.