Which of the Following Statements About the Mean Absolute Deviation

question 90

Multiple Choice

Which of the following statements about the mean absolute deviation (MAD) is the most accurate?

• A) It is the square root of the standard deviation.
• B) It can be a positive number or a negative number.
• C) It is measured in the same units as the original data.
• D) It is the arithmetic mean of the squared deviations from the mean.

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Definitions:

Basket of Goods

A representative collection of products and services used to monitor price changes and inflation over time.

Interest Rates

A finance charge expressed as an annual rate of return or the annual cost of credit or loan, which reflects the time value of money.

Currency Depreciate

A decrease in the value of a currency relative to other currencies in the foreign exchange market.

Currency Appreciate

The increase in the value of one currency relative to another in the exchange rate markets.