Is variance a measure of dispersion
Is variance a measure of dispersion

This article "Is variance a measure of dispersion" will also explain about how to calculate variance.

Is variance a measure of dispersion

In statistics, we have two types of variables:

1. Non-dependent variable — which is the variable that depend on another variable in some other variable.

2. Independent variable — which is the variable which does not depend on other variable.

The dependent variable are always change in one variable as the change of any other variable. independent variable can be calculated by using an equation, for example, our house will increase or decrease with time depending on weather condition.

Variance measures how much a variable change when it varies over a period of time.

Variance measures how much a variable change as we vary over a period of time. Mathematically, it is called the standard deviation (SD) or the mean deviation (MD) in statistic.

In simple words, its calculation can be done as follows.

1. The variance of each data point is computed by summing up all squared deviations, divided by the number of observations. This is used to calculate the standard deviation of each datapoint. If you are dealing with continuous data, then you should take the square root of this sum, because it’s really a way of dividing and multiplying numbers in mathematical form. In case of discrete data, divide by 2 and multiply by the number of observations.

2. For comparing two non-dependent variable to be standardized, the variance should be less than 2 standard deviations from mean. Similarly, if there is an independent variable, then the standard deviation should be higher than mean.

3. When we deal with multiple values of independent variable, variance is equal to the sum of mean squares of deviations over each dependent variable.

4. Standardization of variance means that we needn’t be aware of each independent variable, we just need to know how many total depend variable we have.