📊 Variance Calculator
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📌 Understanding Variance Calculation
Variance measures how far numbers in a dataset are spread out from their mean. It is calculated using the formula:
- Variance (σ²) = (Σ(x – μ)²) / N
- Where μ is the mean of the dataset, and N is the total number of values.
📌 Example Calculations
| Numbers | Variance |
|---|---|
| 10, 20, 30 | 66.67 |
| 5, 15, 25, 35 | 166.67 |
| 2, 4, 6, 8, 10 | 8 |
🔧 Practical Applications of Variance
1. Statistics & Data Analysis: Used to measure data dispersion in datasets.
2. Finance & Investment: Helps in analyzing financial risk and returns.
3. Quality Control: Ensures consistency in manufacturing processes.
❓ FAQs
Q1: How do I calculate variance?
✅ Find the mean, subtract each value from the mean, square the differences, sum them up, and divide by N.
Q2: Can variance be negative?
✅ No, variance is always positive or zero.
Q3: Where is variance commonly used?
✅ It is widely used in **finance, statistics, and manufacturing**.
Q4: What happens if all numbers are the same?
✅ The variance will be zero, as there is no variation.
Q5: Why is variance important?
✅ It helps to **measure data consistency and identify fluctuations in datasets**.