Provide an Appropriate Response

question 115

Essay

Provide an appropriate response.
-Without calculating the standard deviation, compare the standard deviation for the following three data sets. (Note: All data sets have a mean of 30.)Which do you expect to have the largest standard deviation and which do you expect to have the smallest standard deviation? Explain your answers in terms of the formula $$\begin{array} { l } s = \sqrt { \frac { \sum ( x - \bar { x } ) ^ { 2 } } { n - 1 } } \\30,30,30,30,30,30,30,30,30,30 \\20,25,25,30,30,30,30,35,35,40 \\20,20,20,25,25,35,35,40,40,40\end{array}$$

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Definitions:

Risk

Risk refers to the potential of losing some or all of an investment due to various factors such as economic changes, market volatility, or company performance.

Business Transaction

An economic event or activity that changes a company's financial position or earnings, often involving exchanges of value.

Gain

Gain refers to an increase in the value of an investment or asset, resulting in a financial profit when the asset is sold or valued.

Loss

A financial condition in which expenses exceed revenues, resulting in a negative balance.