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PEAZIT Aha card

Variance measures spread around the mean

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Subtract the mean from each value, square each difference and average these squares. Opposite deviations can no longer cancel.

For 1, 3, 5, the mean is 3 and variance 8/3.
RelationMeaning
x̄ = (1 + 3 + 5)/3 = 3First calculate the dataset's center.
(1 − 3)² + (3 − 3)² + (5 − 3)² = 8Squared deviations are 4, 0 and 4.
σ² = 8/3Divide by all three observations.

One worked example

  1. x̄ = (1 + 3 + 5)/3 = 3First calculate the dataset's center.
  2. (1 − 3)² + (3 − 3)² + (5 − 3)² = 8Squared deviations are 4, 0 and 4.
  3. σ² = 8/3Divide by all three observations.

Watch out: Here we divide by n for the complete described population. A sample variance estimator often uses n−1. Standard deviation is the square root of variance.

Goal, prerequisites and card origin

What you will learn: Calculate variance for the complete described population.

What you need first: Arithmetic mean and squaring.

An original PEAZIT working card. Independent expert review and effectiveness testing have not yet taken place. · v1

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Subtract the mean from each value, square each difference and average these squares. Opposite deviations can no longer cancel.

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