Which of the following is an example illustrating the use of variance?
A)As a measure of risk.
B)As a judge of consistency.
C)To search for and reduce variability in a process.
D)All of these choices are true.

Question

Quizplus · Accepted Answer

Variance is a statistical measure used to quantify the amount of variation or dispersion of a set of data points around their mean value. It has several applications, including as a measure of risk in finance and investments, as a judge of consistency in quality control, and to search for and reduce variability in a process in manufacturing and operations management. Therefore, all choices are true and illustrate the use of variance.

Which of the Following Is an Example Illustrating the Use