Variance

Variance is the average of the squared differences between the values and the Mean in a series of numbers.

The formula for variance is:

S2 =

Snt=1 (Xt – µt)2
__________
n-1

The variables used in variance are defined as follows:

X = the value of the statistic

n = the number of values

µ= the Mean of all the values

Back to Forecasting Methods