In statistics, what does the term 'variance' measure?

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Question: In statistics, what does the term \'variance\' measure?

Options:

Correct Answer: The spread of a set of data points

Solution:

Variance measures the spread of a set of data points, indicating how much the data points differ from the mean.

In statistics, what does the term 'variance' measure?

In statistics, what does the term 'variance' measure?

Step 1: Understand that variance is a statistical term used to describe how data points are distributed.
Step 2: Recognize that data points are the individual values in a dataset.
Step 3: Identify the mean, which is the average of all data points in the dataset.
Step 4: Realize that variance looks at how far each data point is from the mean.
Step 5: Know that a high variance means the data points are spread out widely from the mean, while a low variance means they are close to the mean.

Variance – Variance measures the spread of a set of data points, indicating how much the data points differ from the mean.