Measures of Central Tendency and DispersionMCQMTP June 22Question 3185 of 473
All Questions

If the profit of a company remains same for the last 10 months then the SD of profit of the company would be:

Options

APositive
BNegative
CZero
Deither (a) or (c)
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Correct Answer

✅ Option c — Zero

All Options:

  • APositive
  • BNegative
  • CZero
  • Deither (a) or (c)

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Detailed Solution & Explanation

**Concept:** If all observations are identical, every deviation from the mean is zero, making variance and SD both equal to zero. **Analysis:** With constant profits P\displaystyle P for 10 months: - Mean = P\displaystyle P - ∑(xi−xˉ)2=0\displaystyle \sum(x_i - \bar{x})^2 = 0 - σ2=0\displaystyle \sigma^2 = 0, σ=0\displaystyle \sigma = 0 SD = **Zero**. Note: SD can NEVER be negative (it's a square root of a non-negative quantity). Hence, **Option C** is the correct answer.

About This Chapter: Measures of Central Tendency and Dispersion

Paper

Paper 3: Quantitative Aptitude

Weightage

12-15 Marks

Key Topics

Mean, Median, Mode, Range, Mean Deviation, Standard Deviation

The core foundation of Statistics. This chapter covers Mean (Arithmetic, Geometric, Harmonic), Median, Mode, and their properties. It also explores measures of spread like Range, Mean Deviation, Standard Deviation, and Quartile Deviation.

View Official ICAI Syllabus

Exam Strategy Tip

Do not just memorize formulas; ICAI loves asking about the mathematical properties (e.g., 'sum of deviations from the AM is always zero'). You can usually eliminate 2 options just by knowing the properties.

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