Which of the following is true about variance?
A) It measures the uncertainty of a random variable.
B) Higher variance implies low uncertainty.
C) It is the square root of a random variable's standard deviation.
D) It is the weighted average of all possible outcomes.

Question

Quizplus · Accepted Answer

Variance measures the dispersion of a set of data points around their mean value, essentially quantifying the uncertainty or variability of a random variable. Higher variance indicates greater spread or variability in the data, not lower uncertainty. Variance is actually the square of the standard deviation, not its square root. Lastly, variance is not the weighted average of all possible outcomes; that description more closely aligns with the expected value or mean of a distribution.

Which of the Following Is True About Variance