Description: Variance is a statistical measure that quantifies the dispersion of a dataset relative to its mean. In simple terms, it indicates how much individual values deviate from the mean of the set. A low variance suggests that the data points are clustered close to the mean, while a high variance indicates that the data points are more spread out. Variance is calculated as the average of the squared differences between each value and the mean of the set. This concept is fundamental in various fields, including statistics, data analysis, machine learning, and anomaly detection, as it helps to understand data variability and is crucial for informed decision-making. In the context of analytics and financial forecasting, variance can refer to the difference between expected and actual outcomes, helping organizations optimize their strategies and resources.
