Why Do We Use the Sample Standard Deviation for Smaller

question 9

Multiple Choice

Why do we use the sample standard deviation for smaller data sets, such as those with less than 20 samples?

• A) It's easier to calculate for smaller data sets
• B) With smaller sample sets, the standard deviation of the parent population is often overestimated
• C) With smaller sample sets, the standard deviation of the parent population is often underestimated
• D) Significant figures get jumbled with small data sets
• E) I wish I knew. Truly I do.

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Definitions:

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Variable Production Costs

Costs that vary directly with the level of production output, such as raw materials and direct labor.

Absorption Costing

An accounting method that includes all manufacturing costs, both variable and fixed, in the cost of producing each unit of a product.

Variable Costing

An accounting method that only allocates variable costs to the inventory; fixed manufacturing overhead is expensed as incurred.