How is Range calculated?

Study for the Certified Defense Financial Manager (CDFM) Exam 1. Engage with flashcards and multiple choice questions, with hints and explanations for each query. Prepare confidently for your exam!

Multiple Choice

How is Range calculated?

Explanation:
Range shows how far apart the extremes of a data set are. It is calculated by subtracting the smallest value from the largest value. For example, in a set with values 3, 7, 2, 9, and 5, the smallest is 2 and the largest is 9, so the range is 9 − 2 = 7. This simple measure of spread differs from standard deviation, which looks at how far values typically deviate from the mean, and from a difference between median and mean, which doesn’t describe spread. The phrase largest value minus smallest value is the standard way to define range, so it’s the correct concept. (The two options phrased the same way are effectively identical, just with different capitalization.)

Range shows how far apart the extremes of a data set are. It is calculated by subtracting the smallest value from the largest value. For example, in a set with values 3, 7, 2, 9, and 5, the smallest is 2 and the largest is 9, so the range is 9 − 2 = 7. This simple measure of spread differs from standard deviation, which looks at how far values typically deviate from the mean, and from a difference between median and mean, which doesn’t describe spread. The phrase largest value minus smallest value is the standard way to define range, so it’s the correct concept. (The two options phrased the same way are effectively identical, just with different capitalization.)

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