Which of the Following Is True About Variance

question 34

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:

Marginal Cost

The cost incurred by producing one more unit of a good or service.

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of a product or service.

Average Total Cost

The total cost of production divided by the total quantity produced, representing the average cost per unit of output.

Implicit Costs

The opportunity costs of using resources owned by the business for its operations, not directly paid out in cash.