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 find the variance, first, we need to calculate the mean of the closing stock price of MNM Corporation for the given 7 trading days, which is:

Mean = (45 + 43 + 44 + 45 + 44 + 46 + 48) / 7 = 44.86

Next, we need to find the difference between each closing stock price and the mean, square the values, and sum them up:

(45 - 44.86)² + (43 - 44.86)² + (44 - 44.86)² + (45 - 44.86)² + (44 - 44.86)² + (46 - 44.86)² + (48 - 44.86)² = 31.43

Finally, divide the sum by the number of data points minus 1:

Variance = 31.43 / (7 - 1) = 4.238

Therefore, the variance is 4.238, which is closest to choice D (6.857).

The Closing Stock Price of MNM Corporation for the Last