CompTIA N10-007 Q&A - in .pdf

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You are examining a group of 6 stocks within an industry. The industry average profit margin is expected to be 30%. For these stocks, the average profit margins have been 50%, 25%, 15%, 5%, 45%, and 30%.
What is the mean absolute deviation of profit margins from the industry average?
A. 13.0%.
B. 13.7%.
C. 13.3%.
D. 13.5%.
Answer: C
The mean absolute deviation = the sum of (as i goes from 1 to n) of the absolute value of (X_i - Xbar), divided by n. Here, we have [|50% - 30%| + |25% - 30%| + |15% - 30%| + |5% - 30%| + |45% - 30%| + |30%
- 30%|]/6 = 13.33%

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