Question: Why is the standard deviation rather than the average deviation typically used?

Why is the standard deviation rather than the average deviation typically used?

Step by Step Solution

★★★★★

3.40 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The average deviation always equals zero Hence the average deviation must be manipu... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

190-B-B-C-B-M (263).docx

120 KBs Word File

Students Have Also Explored These Related Business Communication Questions!

Q:

Why is the standard deviation typically reported, rather than the variance?

Q:

Why is the standard deviation of a portfolio usually smaller than the standard deviations of the assets that comprise the portfolio?

Q:

Why is the standard deviation of a security's returns an inadequate measure of the contribution of that security to the risk of a portfolio that is well diversified?

Q:

Just 0.1% of the people in a specific populace have a specific illness (an occurrence pace of .001). Of the individuals who have the sickness, 90% test positive when a specific symptomatic test is...

Q:

Can you answers questions 3.4.6.with the Tableau? Thanks!!! 1. What is the difference between descriptive and inferential statistics? 2. Define the analytical notion of metrics. 3. Suppose the speed...

Q:

kindly answer 2,3,4 & 5 75 2. Define the analytical notion of metrics. 3. Suppose the speed limits in thirteen countries in miles per hour are as follows: Country Highway Miles per Hour 1. Italy 87...

Q:

5 Consider the success run chain in Example 8.2.16. Suppose that the chain has been running for a while and is currently in state 10. (a) What is the expected number of steps until the chain is back...

Q:

1) A new SAT study course is tested on 12 individuals. Pre-course and post-course scores are recorded. Of interest is the average increase in SAT scores. The following data is collected. Conduct a...

Q:

In this assignment , you will examine what happens when different sample sizes are used to once ? What if you rolled the die 10 times or 100 times ? You will be given a data file that contains the...

Q:

Suppose Amy is choosing how to allocate her portfolio between two asset classes: risk-free government bonds and a risky group of diversified stocks. The following table shows the risk and return...

Q:

1) Each DNA molecule has two sides, one is called the template from which the mRNA is constructed by RNA polymerase, and the other is the coding side which codes for a protein. If the template side...

Q:

(a) Encode the following messages: 1000 1100 1011 1110 1001 1111. (b) Decode the following received words: 1100001 1110111 0010001 0011100. (c) Construct a decoding table consisting of the syndromes...

Q:

Treasury bonds are registered at the New York Stock Exchange, but the secondary market trading occurs over - the - counter. a . True b . False

Q:

22. (a) Add 2 1 7 4 to 3 0 7 4 (b) Subtract 3 0 7 4 from 2 1 7 4 (c) Calculate the inverse of 3 1 4 2 (d) Does the inverse of the following matrix exist? Explain your answer 3 2 3 2

Q:

You plan to conduct a survey using unrestricted sampling. What subjective decisions must you make?

Q:

As populations age and young workers reject work requiring repetitive operations, factories around the world are turning to robots. It is estimated that the US has 176 robots for every 10,000...

Q:

What is the nature of data collected in qualitative research?

Q:

Manitowoc Crane (A). Manitowoc Crane (U.S.) exports heavy crane equipment to several Chinese dock facilities. Sales are currently 12,000 units per year at the yuan equivalent of $23,000 each. The...

Q:

2. If you would like to retire with $2,000,000, what amount must you invest at the end of each year for the next 40 years if you can invest at 10% per year? If you invest at the end of each month for...

Q:

Which of the following guidelines are appropriate for inclusion in a portfolio management policy? I. Diversify among different types of securities and across industry and geographic lines. II ....