Which of the Following Is True About the Computational Formula

question 69

Multiple Choice

Which of the following is true about the computational formula for variance?

• A)The computational formula will always produce the same solution as the definitional formula (give or take rounding errors).
• B)It is a short-cut method for calculating variance when the population or sample size is large.
• C)It is derived mathematically from the definitional formula.
• D)all of the above

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Definitions:

Deferred Annuity

An insurance product that delays income payments until the investor elects to receive them, which can be many years after the initial investment.

Ordinary Annuity

A series of equal payments made at regular intervals, with the interest compounded at the end of each period.

Compounded Semi-annually

Interest calculation method where interest is added to the principal twice a year, increasing the amount on which future interest is calculated.

Bequest

A transfer of personal property or assets to a beneficiary as dictated by the will of the deceased.