How Is the Calculation of a Variance Affected by an Observation

question 36

Multiple Choice

How is the calculation of a variance affected by an observation with a negative rate of return when other returns are positive?

• A)It reduces the variance
• B)It increases the variance
• C)Variance is not affected by negatives or positives
• D)The effect cannot be determined from this information

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Definitions:

External Force

Factors outside an organization that can affect its performance or operations, such as market trends, regulatory changes, or economic conditions.

Organizational Change

Organizational change involves the process through which companies modify major components of their operations, structures, or strategies to address internal or external opportunities or challenges.

Customer Feedback

Information coming directly from customers about the satisfaction or dissatisfaction they feel with a product or a service, often used for improvement and adjustments.

Offshoring

The practice of relocating company operations or functions to another country to reduce costs or access skilled labor.