The Two More Useful Measures of Variation in the Distribution

question 1

Multiple Choice

The two more useful measures of variation in the distribution of data are the variance and standard deviation.Which of the following best explains why standard deviation is the more commonly reported measure of variation?

• A)Standard deviation is easier to calculate than variance.
• B)Standard deviation provides information on how close together or far apart values are in the sample of data, whereas variance does not provide this information.
• C)The units for standard deviation are the same as sample data, whereas the units for variance differ from that of the sample data.
• D)Variance is primarily based on the highest and lowest value of the sample data, whereas standard deviation is based on all sample data.

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Definitions:

Pay Plan

A structure outlining how employees are compensated, including salary levels, bonuses, and increments.

Differential Piece Rate

A compensation system where workers are paid based on the quantity of work produced, with rates that can vary depending on performance levels reached.

Standard Hour Plans

Compensation packages that offer wages based on the number of hours worked, adjusted by efficiency or predetermined standards.

Piecework Plans

A compensation system where employees are paid based on the quantity of work completed, rather than on the number of hours worked.