👉 Variance (Var) is a statistical measure that quantifies the spread or dispersion of a set of data points around their mean (average). It is calculated as the average of the squared differences from the mean, providing a numerical value that represents how much the individual data points deviate from the average. A higher variance indicates greater spread in the data, while a lower variance suggests that the data points are more closely clustered around the mean. Variance is fundamental in understanding the variability within a dataset and is crucial in many statistical analyses, including hypothesis testing, regression analysis, and financial risk assessment.
