The Standard Deviations (In Thousands of Dollars) for Building a Small

question 18

Multiple Choice

The standard deviations (in thousands of dollars) for building a small and large complex are 535 and 976, respectively. Based on the resulting coefficients of variation (CV) , which of the following statements would be true?

• A) The CV of building a large complex is less than that of building a small complex.
• B) The CV of building a small complex is less than that of building a large complex.
• C) The risk averse action would be to build a large complex.
• D) The CV of building a large complex is less than that of building a small complex and the risk averse action would be to build a large complex.
• E) The CV of building a small complex is less than that of building a large complex and the risk averse action would be to build a large complex.

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Definitions:

Rating Error

A mistake or bias that occurs when evaluating an individual, typically in performance appraisals, leading to inaccurate or unfair assessments.

Calibration Meetings

Sessions in which managers or HR professionals discuss and align on performance standards, ratings, and development needs for employees to ensure consistency and fairness.

Performance Appraisal

The evaluation process by which an employee's job performance is assessed and documented by a manager or supervisor.

Calibration Meeting

Meeting at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating the influence of rating errors.