-The Variance of a Probability Distribution Can Be Described As

question 47

Multiple Choice

-The variance of a probability distribution can be described as:

• A)a measure of the riskiness of a probability distribution and is calculated by finding the square root of the probability-weighted squared deviations of the possible outcomes.
• B)a measure of the riskiness of a probability distribution and is calculated by finding the probability-weighted squared deviations of the possible outcomes times two.
• C)a measure of the amplitude of a probability distribution and is calculated by finding the square root of the probability-weighted squared deviations of the possible outcomes.
• D)a measure of the riskiness of a probability distribution and is calculated by finding the probability-weighted squared deviations of the possible outcomes.

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Definitions:

Straight-Line Depreciation

A depreciation method where an asset's purchase cost is uniformly divided across its usable life, providing an equal expense charge each year.

After-Tax Discount Rate

The interest rate used to discount future cash flows to their present value after accounting for the effects of taxes.

Incremental Sales

The additional revenue generated from a specific business action or decision, such as running a marketing campaign or launching a new product.

Cash Operating Expenses

Expenses that a company incurs during its day-to-day operations that require cash outflow.