Variance Is Best Defined As

question 46

Multiple Choice

Variance is best defined as:

• A)difference of opinion in expected returns.
• B)the mean of the squared deviations from the expected value.
• C)the median difference between the most probable outcome and least probable outcome.
• D)the difference between the expected return and the actual return.

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Definitions:

Least-Squares Regression

A statistical technique used to find the line of best fit for a set of data, minimizing the sum of the squares of the differences between the observed and predicted values.

Variable Cost

Costs that vary directly with the level of production output or activity, such as materials and labor directly involved in manufacturing.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, over a specified period.

High-Low Method

A technique in managerial accounting used to estimate fixed and variable costs by analyzing the highest and lowest levels of activity and the associated costs.