Advanced: Standard Deviation and Variance

Quiz 5

Assume d1 and d2 are datasets both measured in the same units. We know that the standard deviation of d1 is 5 and the variance of d2 is 36, which of the following are certainly true. Mark all that apply.

Remember the Standard Deviation is the square root of the variance. So if the Variance is 4 the Standard Deviation would be 2

The mean is larger for d1 than for d2.

The variance for d2 is larger than for d1.

The standard deviation for d2 is larger than for d1.

The median for d2 is larger than for d1.

The range for d2 is larger than for d1.

SOLUTION:

The variance for d2 is larger than for d1.
The standard deviation for d2 is larger than for d1.

Quiz 6

SOLUTION:

All the data points must be the same.

For each of the below: If the statement is true , mark the box next to the statement.

If two datasets have the same variance, they will also have the same standard deviation.

If I have two investment options with the same mean return, it really doesn't matter which I invest in.

If I have two investment options with the same standard deviation associated with the return, they will also have the same max possible return.

SOLUTION:

If two datasets have the same variance, they will also have the same standard deviation.