# Q7: What statistic is the commonly used measure of risk associated with stock and stock funds …

1) What statistic have you recently observed? Choose a variable that has many possible values (A variable that takes two possible values is not a good example for this discussion). Describe the data associated with the statistic.

2) Suppose that the data has low variance. What would that tell you? How would data with high variance compare?

3) Suppose that the data has right skew. What would that tell you? Is the mean less than or greater than the median? Describe the data with left skew.

4) Where does Excel compute a summary table of Descriptive Statistics? I recommend the use of this function instead of writing computing expressions for each statistic. Save yourself some time and learn to use this single function.

Q1: When is the median the preferred measure of center?

Q2: Name several examples of common median statistics.

Q3: For restocking, which average would you apply to shoe sizes.

Q4: What does the pth percentile tell us?

Q5: Would a supplier with high or low variability be preferred?

Q6: Suppose you know the physical units of a variable to be in inches. What are the units of the variance of the variable?

Q7: What statistic is the commonly used measure of risk associated with stock and stock funds. Hint: It measures how monthly returns fluctuate around the long run average return.

Q8: If a distribution or sample is negatively skewed, is the mean less than or greater than the median?

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