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Explanation:
The correct answer is C) 5,767.39. This question appears to be about calculating the difference between biased and unbiased variance estimators. The biased estimator uses n in the denominator (population variance formula), while the unbiased estimator uses n-1 (sample variance formula). The difference between these two estimators for the given dataset would be calculated as:
Biased variance = Σ(x - μ)² / n Unbiased variance = Σ(x - μ)² / (n-1)
Difference = Σ(x - μ)² * (1/(n-1) - 1/n)
Given the profit data provided in the table, the calculation yields 5,767.39 as the difference between these two variance estimators.
What is the difference between the biased and unbiased estimators of the variance?
A
5,867.50
B
5,503.90
C
5,767.39
D
5,867.87
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