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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Definitions:

Group Rules

Guidelines or norms established by a group to dictate behavior and ensure smooth functioning.

Norms of Behavior

Norms of behavior refer to the shared expectations and rules that guide the conduct of individuals within a group or society.

Honesty

Truthfulness; a quality of character necessary for trust, respect, and honor; a foundation value and fundamental requirement for successful leadership.

Problem Behavior

Actions or patterns of actions that are undesirable or pose challenges in a social setting.