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The Advantage of Using Mean Absolute Deviation Rather Than Variance

Question 119

Multiple Choice

The advantage of using mean absolute deviation rather than variance as a measure of dispersion is that mean absolute deviation ________.


A) is less sensitive to extreme deviations
B) requires fewer observations to be a valid measure
C) is a relative measure rather than an absolute measure of risk
D) considers only unfavorable (negative) deviations from the mean

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