Question

Define variance with exampe

Answer 1

The Variance is defined as: The average of the squared differences from the Mean. To calculate the variance follow these steps: Work out the Mean (the simple average of the numbers) Then for each number: subtract the Mean and square the result (the squared difference).

Answer 2

Answer:

Step-by-Variance is a statistical measure of how much a set of observations differ from each other.

In accounting and financial analysis, variance also refers to how much an actual expense deviates from the budgeted or forecast amount.

For example, let's say Company XYZ stock has the following prices:

The average of these prices is $21.33. To calculate the variance, we see how "far away" each day's stock price is from $21, like this.