Calculate the variance of a set of data.
Frequently Asked Questions (FAQs):
- What is variance, and why is it important?
- Variance measures how much individual data points deviate from the mean of a dataset. It’s a fundamental statistical concept that helps quantify the spread or dispersion of data points around the average.
- What is the formula for calculating variance?
- The formula for calculating the variance of a dataset with n values, denoted as x₁, x₂, …, xₙ, is:
- Where n is the number of values in the dataset, xᵢ represents individual data points, and Σ denotes summation.
- How do I interpret variance values?
- Variance provides a measure of how much data points differ from the mean. Larger variance indicates greater dispersion, while smaller variance suggests data points are closer to the mean. It’s an essential tool for understanding the variability within a dataset.