How does the variance of the sample mean compare to the variance of the population?
A) It is smaller and therefore suggests that averages have less variation than individual observations.
B) It is larger and therefore suggests that averages have less variation than individual observations.
C) It is smaller and therefore suggests that averages have more variation than individual observations.
D) It is larger and therefore suggests that averages have more variation than individual observations.

Question

Quizplus · Accepted Answer

The variance of the sample mean (also known as the standard error of the mean) is smaller than the variance of the population because it is calculated by dividing the population variance by the sample size. This suggests that the averages have less variation than individual observations.

How Does the Variance of the Sample Mean Compare to the Variance