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Variance And Standard Deviation

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Learning Made Simple

The document introduces the concepts of variance and standard deviation. Variance is a statistical measure that quantifies how far observations in a data set spread out from the mean or average value. It is calculated by taking the average of the squared differences from the mean. Standard deviation is the square root of variance and represents how dispersed the values in a data set are from the mean. The document provides examples of computing variance and standard deviation to illustrate these statistical concepts.

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Understanding Variance and Standard Deviation LEARNING Made Simple
You will be introduced thro The concept of variance Computation of Variance Computation of Standard Deviation LEARNING Made Simple
Variance Variance is often used as a measure of risk in finance. It is a statistical concept whose purpose is to measure the dispersion of observation around the mean or the average value. LEARNING Made Simple
The concept of variance Lets consider that in a poll, we took 10 students and their ages are as per below 21, 20, 19, 23, 22, 21, 20, 18, 19, 19 Lets put them in order... Range tells us about the dispersion of values in sample LEARNING Made Simple
The concept of variance Range only depends on the highest and the lowest value in the sample, and not how observations are distributed. This bring us to variance. Variance is a measure, very much like arithmetic mean which takes every observation into account. It gives equal weight to all observations and measures the dispersion around the central tendency. LEARNING Made Simple
Example LEARNING Made Simple
Lets putem to Histogram Histogram is a visual representation of the variable of interest (Students age) and their frequency. LEARNING Made Simple
Lets join the bars... If we expand our selection to more observations or full population, above graph can be more smooth and can have bell shape.. LEARNING Made Simple
Lets get back to the concept of Variance LEARNING Made Simple
Variance LEARNING Made Simple
How to Compute Variance? LEARNING Made Simple
How to Compute Variance? LEARNING Made Simple
How to Compute Variance? LEARNING Made Simple
How to Compute Variance? LEARNING Made Simple
Computation of Variance for a set of historical observation. LEARNING Made Simple
Solution LEARNING Made Simple
Computation of Variance for probability distribution Below is the table of attendance in football stadium LEARNING Made Simple
LEARNING Made Simple
Computation of Standard Deviation LEARNING Made Simple
LEARNING Made Simple
LearningMadeSimpleTM Learning Made Simple is initiative taken by few people earlier related to the Corporate World whose aim is to provide quality education and training to those who wish to excel in their career path. Learning Made Simple is an association who works on a no profit no loss basis and provide training and development in the era of Financial Planning, Financial Management, AMFI, NCFM, Management Concepts, Soft Skills, Leadership, Personality Development, Goal Setting, Marketing Management, Behavioral Science, NLP and various other segments. You can get in touch with us by sending email on kaushal@thefinancialplanners.in
Powered By, L M LEARNING S Made Simple

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Variance And Standard Deviation

  • 1. Understanding Variance and Standard Deviation LEARNING Made Simple
  • 2. You will be introduced thro The concept of variance Computation of Variance Computation of Standard Deviation LEARNING Made Simple
  • 3. Variance Variance is often used as a measure of risk in finance. It is a statistical concept whose purpose is to measure the dispersion of observation around the mean or the average value. LEARNING Made Simple
  • 4. The concept of variance Lets consider that in a poll, we took 10 students and their ages are as per below 21, 20, 19, 23, 22, 21, 20, 18, 19, 19 Lets put them in order... Range tells us about the dispersion of values in sample LEARNING Made Simple
  • 5. The concept of variance Range only depends on the highest and the lowest value in the sample, and not how observations are distributed. This bring us to variance. Variance is a measure, very much like arithmetic mean which takes every observation into account. It gives equal weight to all observations and measures the dispersion around the central tendency. LEARNING Made Simple
  • 6. Example LEARNING Made Simple
  • 7. Lets putem to Histogram Histogram is a visual representation of the variable of interest (Students age) and their frequency. LEARNING Made Simple
  • 8. Lets join the bars... If we expand our selection to more observations or full population, above graph can be more smooth and can have bell shape.. LEARNING Made Simple
  • 9. Lets get back to the concept of Variance LEARNING Made Simple
  • 10. Variance LEARNING Made Simple
  • 11. How to Compute Variance? LEARNING Made Simple
  • 12. How to Compute Variance? LEARNING Made Simple
  • 13. How to Compute Variance? LEARNING Made Simple
  • 14. How to Compute Variance? LEARNING Made Simple
  • 15. Computation of Variance for a set of historical observation. LEARNING Made Simple
  • 16. Solution LEARNING Made Simple
  • 17. Computation of Variance for probability distribution Below is the table of attendance in football stadium LEARNING Made Simple
  • 19. Computation of Standard Deviation LEARNING Made Simple
  • 21. LearningMadeSimpleTM Learning Made Simple is initiative taken by few people earlier related to the Corporate World whose aim is to provide quality education and training to those who wish to excel in their career path. Learning Made Simple is an association who works on a no profit no loss basis and provide training and development in the era of Financial Planning, Financial Management, AMFI, NCFM, Management Concepts, Soft Skills, Leadership, Personality Development, Goal Setting, Marketing Management, Behavioral Science, NLP and various other segments. You can get in touch with us by sending email on kaushal@thefinancialplanners.in
  • 22. Powered By, L M LEARNING S Made Simple
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