Variance

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Term: Variance

Definition:In regard to rules or laws, a variance is an official decision or document that allows someone to do something that is not usually allowed. In statistics the variance measures how far each number in the set is from the mean. Variance is used for probability distribution. Since variance measures the volatility from an average, and volatility is a measure of risk, the variance statistic can help determine the magnitude of risk.

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49 - Regression Analysis Used in Compensation Administration 17
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