Variance Application 2025

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Youll find this concept applied in areas such as statistics, data science, and probability. Variance helps us understand the spread or dispersion of data, and is a building block to understanding Standard Deviation, another important topic in Math.
Explanation Mean = (2+4+6+8+10)/5 = 6. Variance = [(2-6)^2 + (4-6)^2 + (6-6)^2 + (8-6)^2 + (10-6)^2] / 5. Variance = [16 + 4 + 0 + 4 + 16] / 5. Variance = 40 / 5.
Investors use variance to see how much risk an investment carries and whether it will be profitable. Variance is also used in finance to compare the relative performance of each asset in a portfolio to achieve the best asset allocation. The square root of the variance is the standard deviation.
Given Data 1: 2,4,5,6,8,17 has standard deviation 23.33.
The variance of data 2, 4, 5, 6, 8, 17 is 23.33.
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Final Answer: The variance of the numbers 2, 4, 5, 6, 8, 17 is approximately 23.33.
The variance is a measure of variability. It is calculated by taking the average of squared deviations from the mean. Variance tells you the degree of spread in your data set. The more spread the data, the larger the variance is in relation to the mean.

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