Which of the following is the most common measure of total risk in statistics? i. $\mathrm{variance}$ ii. $\mathrm{standard\; deviation}$ iii. $\sqrt{\mathrm{variance}}$

• A. $\mathrm{standard\; deviation}$
• B. $\sqrt{\mathrm{variance}}$
• C. $\mathrm{variance}$
• D.

Answer: (A)

Verified step by step guidance

1. Understand that 'total risk' in statistics typically refers to the overall variability or spread of a data set or distribution.
2. Recall that variance measures the average squared deviation from the mean, which quantifies variability but is in squared units.
3. Recognize that the standard deviation is defined as the square root of the variance, bringing the measure back to the original units of the data.
4. Note that because standard deviation is in the same units as the data and directly reflects typical deviations, it is the most common measure of total risk.
5. Therefore, identify that the standard deviation (which is the square root of variance) is the preferred and most common measure of total risk.