When Computing the Variance,why Do We Square the Deviations from the Mean

question 50

Multiple Choice

When computing the variance,why do we square the deviations from the mean?

• A)To return the units of measure to their original form
• B)To compensate for the fact that the number of degrees of freedom is different from N
• C)To transform the raw scores into squared scores
• D)To compensate for the fact that deviations about the mean always sum to zero

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Definitions:

Decrease in Income

A reduction in the amount of money received by an individual or entity, which can affect consumption and saving behaviors.

Downward-sloping Demand Curve

A graph showing that the quantity demanded of a good or service varies inversely with its price, other things being equal.

Equilibrium Price

The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers.

Consumer Surplus

The divergence between the total payment consumers are willing to make for a product or service and what they really pay.