Entity: VARIANCE
Variance is a statistical measurement that indicates how spread out a set of numbers are from their average value, providing insight into the dispersion of data points.
VARIANCE
Etymology
The term 'variance' originates from Latin 'variantia', meaning difference or variation.
Definition
Variance is a statistical measurement that indicates how spread out a set of numbers are from their average value. It measures the distance of each variable from the mean, providing insight into the dispersion of data points.
Historical Context
The concept of variance was first introduced in probability theory and statistics, playing a crucial role in analyzing data and making informed decisions based on numerical information.
Cultural Significance
Variance is widely used in various fields such as finance, economics, and science to understand the distribution and variability of data, aiding in decision-making processes.
Related Concepts
- Standard Deviation: Another measure of dispersion that complements variance in statistical analysis.
- Mean: The average value of a set of numbers, used in calculating variance.
See Also
A statistical measurement of the spread within a data set, indicating how far each number is from the mean and from other numbers in the set.