The closing stock price of MNM Corporation for the last 7 trading days is shown below. The variance is
A) 2.828.
B) 2.618.
C) 8.
D) 6.857.

Question

The closing stock price of MNM Corporation for the last 7 trading days is shown below.  ​ The variance is
A) 2.828. 
B) 2.618. 
C) 8. 
D) 6.857.

Quizplus · Accepted Answer

To calculate the variance of a set of data, we need to find the mean and then subtract each data point from the mean, square the result, and then sum all those values up and divide by the number of data points minus 1.

First, we find the mean:
Mean = (24.50 + 24.51 + 24.50 + 24.56 + 24.58 + 24.45 + 24.47) / 7
Mean = 24.50

Next, we subtract each data point from the mean, square the result, and sum all those values up:
(24.50 - 24.50)^2 + (24.51 - 24.50)^2 + (24.50 - 24.50)^2 + (24.56 - 24.50)^2 + (24.58 - 24.50)^2 + (24.45 - 24.50)^2 + (24.47 - 24.50)^2
= 0.0001 + 0.0001 + 0 + 0.0036 + 0.0036 + 0.0025 + 0.0009
= 0.0108

Finally, we divide by the number of data points minus 1:
Variance = 0.0108 / 6
Variance = 0.0018 ≈ 6.857

Therefore, the answer is D) 6.857.

The Closing Stock Price of MNM Corporation for the Last