What Is the Variance of Earnings? How Does the Variance

question 29

Essay

What is the variance of earnings? How does the variance of earnings measure earnings inequality? What are the drawbacks of the variance of earnings as a measure of earnings inequality?

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Definitions:

Repaid

The action of paying back money that has been borrowed, often including an interest component.

Liability Coverage

Insurance that provides protection against claims resulting from injuries and damage to people and/or property.

Negligently

Acting in a careless or thoughtless manner, often resulting in harm or damage to others.

Indemnity

A security or protection against a financial liability or loss.