What is variance and standard deviation?

Updated May 17, 2026

Short answer

Variance measures spread of data; standard deviation is its square root.

Deep explanation

Variance is E[(X - μ)^2], capturing dispersion around the mean. Standard deviation provides the same measure in original units, making it more interpretable.

Real-world example

Risk measurement in stock price fluctuations.

Common mistakes

  • Confusing variance units with original data units.

Follow-up questions

  • Why square deviations?
  • What is high variance?

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