PRMIA Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition 8007 Question # 26 Topic 3 Discussion

PRMIA Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition 8007 Question # 26 Topic 3 Discussion

8007 Exam Topic 3 Question 26 Discussion:
Question #: 26
Topic #: 3

Which of the following statements about variance and standard deviation are correct?

1. When calculated based on a sample of the population data, one has to correct for any bias in the result by using the number of degrees of freedom in the calculation

2. Variance is in square root units of the underlying data, whereas standard deviation is in units of the underlying data

3. When considering independent variables, variance is additive, while standard deviation is not


A.

All three statements are correct


B.

Statements 1 and 2 are correct


C.

Statements 1 and 3 are correct


D.

Statements 2 and 3 are correct


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