Which of the Following Is Not a Property of Variance

question 20

Multiple Choice

Which of the following is not a property of variance?

• A) The value of the variance is zero only when all of the data values are the same number.
• B) The units of variance are the squares of the units of the original data.
• C) The value of the variance is always positive or 0.
• D) The sample variance is a biased estimator of the population variance.

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Definitions:

Pretax Net Income

The amount of income that a company has earned before any taxes have been deducted.

CVP Analysis

Cost-Volume-Profit Analysis, a financial tool used to determine how changes in cost and volume affect a company's operating income and net income.

Pre-Tax Net Income

The income earned by a business before the deduction of tax expenses.

Variable Costs

Expenses that change in proportion to the activity of a business, such as the cost of raw materials.