Beginner Topic 15 of 51 Math for Computing
Variance and Standard Deviation
Measures of spread around the mean.
How it works
Variance measures how spread out values are around the mean, defined as the average squared deviation, E[(X minus mean) squared], and the standard deviation is its square root, in the same units as the data. For a sample, dividing by n minus 1 instead of n, Bessel's correction, gives an unbiased estimate of the population variance. Variances of independent variables add, and scaling a variable by c scales the variance by c squared. Covariance and correlation extend the idea to pairs of variables.
Where it is used
Quantifying risk and volatility in finance, measuring noise and consistency in experiments and performance measurements, standardizing features with z-scores and defining confidence intervals use these measures.
Common pitfall
Computing variance with the naive formula E[X squared] minus mean squared suffers catastrophic cancellation in floating point; use Welford's algorithm. Standard deviation is sensitive to outliers. Population versus sample formulas are often confused. Interpreting standard deviation assumes roughly symmetric distributions; look at the shape as well.
Where it fits in the course
Variance and Standard Deviation is topic 15 of 51 in Math for Computing, rated Beginner. It follows Mean, Median and Mode. The next topic is Combinatorial Probability.
Practice and explore
- Open the interactive lesson, with a mini quiz.
- Take the Math for Computing quiz.
How to study this topic
- Read the explanation above and restate the definition in your own words.
- Open the interactive lesson and answer its mini quiz.
- Read the common pitfall, then write a short example that avoids it.
- Check your understanding in the Math for Computing quiz, and revisit the topic if you miss a question.
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Related topics
- Mean, Median and Mode (Math for Computing)
- Combinatorial Probability (Math for Computing)
- Expected Value (Math for Computing)
- Conditional Probability (Math for Computing)
- Bias-Variance Tradeoff (AI & Machine Learning)