The Analysis of Variance, ANOVA, Is a Misleading Term Because

question 67

Multiple Choice

The analysis of variance, ANOVA, is a misleading term because:

• A) it is an analysis of the differences between the standard deviations of groups and not the variances.
• B) variance is a singular term implying looking at one group, whereas ANOVA takes multiple groups into is analysis.
• C) it is not an analysis of the difference between the standard deviations of groups but of the differences between the averages of groups.
• D) analysis implies that results are absolute, without error, and there is always some measureable error in statistical analysis.
• E) analysis implies practical as well as statistical significance.

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Definitions:

Canadian Common Stocks

Shares of publicly traded companies based in Canada, representing ownership in those companies.

Normal Distribution

A probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Security Returns

The gains or losses on an investment over a specific period, including dividends, interest, and capital gains, usually expressed as a percentage.

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points or investment returns.