Which of the following statements is true about variances?
A)Positive variances (i.e. ,those with a positive sign)are always favorable.
B)Positive variances (i.e. ,those with a positive sign)are always unfavorable.
C)Negative variances (i.e. ,those with a negative sign)are always favorable.
D)There is not necessarily any correlation between the sign of the result (positive or negative)and whether the variance is positive or negative.

Question

Quizplus · Accepted Answer

The sign of the result (positive or negative) only indicates whether the actual value was higher or lower than the expected value. It is not directly correlated with whether the variance is positive or negative. Both positive and negative variances can be either favorable or unfavorable depending on the situation.

Which of the Following Statements Is True About Variances