Variance

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8 Terms

1
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Var(X) = E[X^2] - (E[X])^2

Mathematical representation of Variance.

2
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σ_X = [Var(X)]^1/2

Mathematical representation of Standard Deviation.

3
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Var(aX + b) = [a^2][Var(X)]

Variance of a Linear Function

4
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Standard Deviation

A measure of how spread out numbers are from their average value (the mean).

5
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Low Standard Deviation

The data points are clustered closely around the average.

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High Standard Deviance

The data points are more scattered and far from the average.


7
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Variance

A measure of how far each number in a data set is from the average and, therefore, from every other number in the set.

8
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CV = (σ_X)/(E[X])

Coefficient of Variation