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The population standard deviation σ for a data set with N observations is computed as the square root of:
AThe mean of squared deviations from the population mean
BThe mean of absolute deviations from the median
CThe sum of all observations
DThe variance multiplied by N
Answer & Solution
Correct answer: A. The mean of squared deviations from the population mean
1. Population standard deviation σ is the square root of population variance.
2. Population variance = (1/N) × Σ(xᵢ − μ)², where μ is the population mean.
3. Hence σ is the square root of the mean of squared deviations from the population mean.
_Source: ICMAI BoS CMA Foundation Paper 3 (Business Mathematics & Statistics), Module 2 §2.2 (Indices and Logarithms) + Module 5 (Standard Deviation), p. 112-160 + 318-340_