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CA Foundation · Quantitative Aptitude · Measures of Central Tendency and Dispersion

Which statement about the standard deviation is correct?

The standard deviation is never negative and equals zero only when all observations are identical. It is the positive square root of the average squared deviation from the mean. It is independent of a change of origin but is affected by a change of scale.

  1. AIt is never negative and is zero only when all observations are equalCorrect
  2. BIt can be negative when most deviations are below the mean
  3. CIt is unaffected by a change of scale
  4. DIt is always smaller than the mean deviation

Explanation

SD is the positive root of the mean squared deviation, so it is non-negative, and it is zero only if every value equals the mean. It is independent of origin but changes with scale. It is not smaller than mean deviation; in fact it is at least as large as the mean deviation about the mean.

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