When pooling variances, the resulting value will be closer to the variance for the sample with the smaller number of scores. ?

Question

Business

George Harper

28 December, 10:54

When pooling variances, the resulting value will be closer to the variance for the sample with the smaller number of scores. ?

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Answers (2)

Know the Answer?

Ann Brady · Answer 1

False

Explanation:

The reason is that the net difference depends upon the efficiency of the company and doesn't always gives a smaller number of score. There numerous examples like Nestle which integrated its finance departments and other departments which generated greater value for the company in the same year above the budget set. So when the company starts control costs with its greater efficiency achievements the favourable variance starts growing and vice versa.

Ray Dudley · Answer 2

False

Explanation:

Pooled variance is technique that is used in statistical analysis to calculate the variance of many different populations because each of the population may have different mean.

However, under pooled variance, it is assumed that each of the population has the variance obtained from the pooling.

Therefore, it is false that the resulting value will be closer to the variance for the sample with the smaller number of scores.