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Earn +20 ptsQ: Is a positive variance always favorable?
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Can additive variance have a negative value?
No. Variance is always positive and so the sum of variances must also be positive.
What difference between a favorable variance and an unfavorable variance?
Favourable variance is that variance which is good for business while unfavourable variance is bad for business
If the mean of a normal distribution is negative what is the varience?
The variance is always positive. The variance is not directly related to the sign (nor magnitude) of the mean.
The difference between variance and standard deviation?
The SD is the (positive) square root of the variance.
Can the variance of a normally distributed random variable be negative?
No. The variance of any distribution is the sum of the squares of the deviation from the mean. Since the square of the deviation is essentially the square of the absolute value of the deviation, that means the variance is always positive, be the distribution normal, poisson, or other.
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