Aggregation Reduces the Standard Deviation of Demand

question 91

Multiple Choice

Aggregation reduces the standard deviation of demand

• A)only if demand across the regions being aggregated is perfectly positively correlated.
• B)only if demand across the regions being aggregated is not perfectly positively correlated.
• C)even if demand across the regions being aggregated is not perfectly positively correlated.
• D)whenever demand across the regions being aggregated is not perfectly uncorrelated.

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