What does it mean when something accounts for the variance?

A variance is defined as the difference between budgeted and actual amounts in an account balance. A variance is a warning that something in your business isn’t going as planned.

What does the variance tell you in statistics?

The term variance refers to a statistical measurement of the spread between numbers in a data set. More specifically, variance measures how far each number in the set is from the mean and thus from every other number in the set. Variance is often depicted by this symbol: σ2.

What does a variance of 1 mean?

If the mean is 100,000 then no. The variance of 1 million means the standard deviation is 1000 or just 1\% of the mean. We know that the probability is about 0.95 that a sample will be within plus or minus 2\% of the mean. In other words, almost all samples will be extremely close in value to the mean.

What variances should be investigated?

Based on this policy, the following variances would be investigated: Unfavorable direct materials price variance of $88,000 (≥ $42,000 minimum) Unfavorable direct labor rate variance of $37,800 (≥ $27,300 minimum) Favorable direct labor efficiency variance of $(27,300) (≥ $27,300 minimum)

What does a high variance mean in statistics?

Variance measures how far a set of data is spread out. A small variance indicates that the data points tend to be very close to the mean, and to each other. A high variance indicates that the data points are very spread out from the mean, and from one another.

What is variable in statistics?

A variable is any characteristics, number, or quantity that can be measured or counted. A variable may also be called a data item.

Is a high variance good or bad?

High-variance stocks tend to be good for aggressive investors who are less risk-averse, while low-variance stocks tend to be good for conservative investors who have less risk tolerance. Variance is a measurement of the degree of risk in an investment.

What does a low-variance mean?

What does a low variance mean?