Which of the Following Statements Is Correct

question 3

Multiple Choice

Which of the following statements is correct?

• A) Random variances are typically large in amount.
• B) Systematic variances are considered uncontrollable.
• C) Most standard cost variances call for investigation and corrective action.
• D) Random variances should typically not be investigated.
• E) Most variances from ideal standards will, by definition, be favorable.

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Definitions:

Significance Level

The threshold at which researchers decide whether an effect or result observed in data is statistically significant, commonly set at 0.05 or 5%.

Summary Statistics

Refers to a set of descriptive indices that summarize the central tendency, dispersion, and shape of a dataset distribution, including measures such as mean, median, variance, and standard deviation.

T-Test

A statistical test used to compare the means of two groups to see if they are significantly different from each other.

Sample SD

The standard deviation of a sample, a measure of the dispersion or variability of data points within the sample.