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Earn +20 ptsQ: How is variance used to measure risk?
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Continue Learning about Math & Arithmetic
Why standard deviation is better measure of variance?
1. Standard deviation is not a measure of variance: it is the square root of the variance.2. The answer depends on better than WHAT!
Why is variance a poor measure of risk?
One definite drawback is that it is usually derived based on historical data and does not take into account future factors.
Why do you measure dispersion?
How do we calculate variance
What is a measure of the spread of a set of data?
The standard deviation is the value most used. Others are variance, interquartile range, or range.
What is the measure of central tendency that is least affected by extreme values?
the variance
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