For Purposes of Determining Standard Deviation,the Variance of a Currency

question 27

Multiple Choice

For purposes of determining standard deviation,the variance of a currency is:

• A)the square root of the variance of the currency.
• B)an average of the deviations from the currency.
• C)plus or minus the average value of the currency over a specific period.
• D)the average of squared deviations from the mean.

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Definitions:

Share of Income

The portion of total income (either personal or national) that is received by an individual, household, or socioeconomic group.

Elastic

A demand curve on which percentage quantity changes more than percentage price is said to be elastic, or sensitive to price. If |e| > 1, demand is elastic, where e is the price elasticity of demand. If |e| = 0, demand is perfectly inelastic while if |e| is infinite, demand is perfectly elastic. If |e| 5 1, demand is unit elastic.

Normal Good

A good for which demand increases when consumer income rises, and falls when consumer income decreases, all else being equal.

Income Increased

A situation where an individual or entity experiences a rise in their earnings or revenue.