Variance Calculator
Sample & population variance · deviation chart · steps
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What Is Variance?
Variance measures how far data values are spread from their mean. It is the average of squared deviations — squaring ensures all deviations are positive and emphasizes larger deviations. A variance of zero means all values are identical.
Squared Units
Variance is in squared units (e.g., cm²). Take the square root for standard deviation in original units.
Additive Property
For independent variables, variances add: Var(X+Y) = Var(X) + Var(Y). This makes variance useful in probability theory.
Outlier Sensitive
Squaring amplifies the effect of outliers. A single extreme value can dramatically increase variance.
The Variance Formula
Worked Example
Step 1: Mean = (4+8+6+5+3)/5 = 26/5 = 5.2
Step 2: Deviations: −1.2, 2.8, 0.8, −0.2, −2.2
Step 3: Squared: 1.44, 7.84, 0.64, 0.04, 4.84
Step 4: Sum of squares = 14.8
Step 5 (sample): s² = 14.8 / 4 = 3.7
Step 5 (population): σ² = 14.8 / 5 = 2.96
Properties of Variance
| Property | Formula | Meaning |
|---|---|---|
| Non-negative | Var(X) ≥ 0 | Always zero or positive |
| Constant shift | Var(X + c) = Var(X) | Adding a constant doesn’t change spread |
| Scaling | Var(cX) = c² · Var(X) | Multiplying by c scales variance by c² |
| Independence | Var(X+Y) = Var(X) + Var(Y) | Variances of independent variables add |
| Zero variance | Var(X) = 0 ⇔ X is constant | All values are identical |
Where Variance Is Used
Finance & Risk
Portfolio variance measures investment risk. Lower variance = more stable returns.
ANOVA
Analysis of Variance partitions total variance into between-group and within-group components.
Quality Control
Manufacturing uses variance to monitor process consistency and detect deviations from standards.