Aprende Population Variance

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Definition

Variance measures how much the values in a dataset deviate from the mean. It provides insight into the spread or dispersion of the data.

To better understand this concept, examine the distribution of salaries in the dataset.

The formula for calculating variance differs depending on whether you're working with a sample or an entire population. In this chapter, the focus is on calculating population variance.

\text{variance} = \frac{\sum^N_{i=1}(x_i-\mu)^2}{N}\\

Where:

$N$ - population size;
$i$ - index of each element;
$x_i$ - each element;
$\mu$ - population mean value.

Explanation

Population variance is calculated by summing the squares of the differences between each data point and the population mean, and then dividing by the number of elements in the population.

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