For a random variable that can take values from zero to 10, what would be the maximum sample variance that could be observed from a sample of two observations?
A) 100
B) 0
C) 50
D) Not enough information to be determined.

Question

Quizplus · Accepted Answer

The formula for finding the maximum sample variance is ((max-min)^2)/4. In this case, the maximum value is 10 and the minimum value is 0, so the maximum sample variance would be ((10-0)^2)/4 = 50. Choice C is the only option that matches this value.

For a Random Variable That Can Take Values from Zero