What Disadvantage(s) Are There of the Mean Deviation

question 68

Multiple Choice

What disadvantage(s) are there of the mean deviation?

• A) Based on only two observations
• B) Based on deviations from the mean
• C) Uses absolute values, which are difficult to manipulate

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Definitions:

Average Rate

The mean amount at which something can be bought or sold, calculated over a specified period or under certain conditions.

Functional Currency

The primary currency used by a business or unit in its financial statements, reflecting the main economic environment in which it operates.

Exchange Gains

Profits resulting from holding or transacting in foreign currencies when exchange rates move favorably.

Losses Reported

Refers to the financial losses that a company discloses in its income statement over a specific period.