You are comparing customer lifetime value (CLV) in £s for two of your firm's products - Mug-R and Jug-S. What does acceptance of the assumption of homogeneity mean for the two groups in this context?
A) The variance is twice as big for Mug-R than Jug-S.
B) Variances in the groups are approximately equal.
C) The variance across the groups is proportional to the means of those groups
D) The variance for both Mug-R and Jug-S is equal to the interquartile range

Question

Quizplus · Accepted Answer

Acceptance of the assumption of homogeneity means that the variances in the groups are approximately equal. In this context, it means that the CLV variance for Mug-R is similar to the CLV variance for Jug-S.

You Are Comparing Customer Lifetime Value (CLV) in £S for Two