Which of the Following Is True About Variance

question 5

Multiple Choice

Which of the following is true about variance?

• A) It measures the uncertainty of a random variable.
• B) Higher variance implies low uncertainty.
• C) It is the square root of a random variable's standard deviation.
• D) It is the weighted average of all possible outcomes.

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Definitions:

Cash Receipts

The money received by a business during a specified period, including revenue from sales, loan proceeds, and investment income.

Cash Disbursements

Outflows of cash for expenses, assets, or other types of payments.

Cost of Goods Sold

The direct costs attributable to the production of goods sold in a company, including materials and labor.

Merchandise Inventory

The total value of all merchandise that a retailer, wholesaler, or distributor has on hand that is available for sale.