Question 46
Measures of DispersionSample variance can be defined as S2 = (1/n) Σ (xi − x̄)2 and S2 = (1/(n − 1)) Σ (xi − x̄)2 where n is the number of sample observations. There is no difference practically between the above definitions when
- A.n ≠ 35
- B.n > 35
- C.n < 35
- D.n = 5
Show the answer and explanation
Answer: B (n > 35)
Explanation
Dividing by n or by n − 1 gives almost the same result when n is large, so the two definitions agree in practice for large samples (n > 35 here).