Variance of a Probability Distribution Is Used to Measure Risk

question 11

Multiple Choice

variance of a probability distribution is used to measure risk because a higher variance is associated with

• A)a wider spread of values around the mean.
• B)a more compact distribution.
• C)a lower expected value.
• D)both a and b
• E)all of the above

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Definitions:

Divorce Rates

Statistical measures of the frequency of divorce within a defined population or area over a specific time period.

Delay Marriage

The decision or trend of postponing marriage until a later age than traditionally observed.

Set in Their Ways

Describes people who are resistant to change and prefer to stick to their established habits or opinions.

Less Likely

Having a smaller chance or probability of occurring or being true, often used in comparative assessments of risk or behavior.