Sample Variance and Sample Standard Deviation - CFA Level 1 Exam Answer

Sample Standard Deviation for Frequency Distribution of Hourly Wages

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Question

If the sample variance for a frequency distribution consisting of hourly wages was computed to be 10, what is the sample standard deviation?

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A

Sample standard deviation is the square root of the sample variance.

To calculate the sample standard deviation, we need to take the square root of the sample variance.

The sample variance (s^2) is given as 10.

The sample standard deviation (s) is the square root of the sample variance, so we can calculate it as follows:

s = sqrt(10) ≈ 3.16

Therefore, the correct answer is A. $3.16.