Question 1 (2 points)
What are measures of variance and what kind of information do they give us when working with sets of numbers?
B
It is a single number used to describe how much variation there is in a distribution.
Information on how scores are spread from the center of a distribution
Measures of variance, like variance and standard deviation, show how much the numbers in a set differ from the center. They tell us about the spread of data, consistency of scores, and how much variability there is in the distribution.
Solution
Sign in to Unlock Answers for Free!
A Learning Platform Trusted by Millions of Real Students and Teachers.
Unlock
Answered by UpStudy AI and reviewed by a Professional Tutor
Like
Bonus Knowledge
Measures of variance, like the variance itself and standard deviation, tell us about the spread of data points around the mean. A low variance indicates that the numbers are close to the average, while a high variance suggests that they are spread out over a wider range. This helps analysts understand the reliability and consistency of the data in a given set.
In real-world applications, knowing the variance can aid in decision-making. For instance, businesses use variance to assess the risk associated with financial investments. A low variance in sales figures might indicate predictability, whereas high variance could alert management to possible future fluctuations in revenue, prompting them to devise more flexible strategies.