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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.
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.
The difference between variance and standard deviation?
The SD is the (positive) square root of the variance.
Can additive variance have a negative value?
No. Variance is always positive and so the sum of variances must also be positive.
When would a variance be labeled as favorable?
a
What is favourable variance?
A favorable variance is the difference between the budgeted or standard cost and the actual cost. If the actual cost is less than budgeted or standard cost, it is a favorable variance.
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.
What does a favorable direct materials efficiency variance indicate?
A favorable direct materials efficiency variance indicates that you are using less material in production than was budgeted for.
Why would a favorable price variance for material might be the cause of unfavorable quantity variance?
A favorable/unfavorable price variance does not effect your quantity variance. The reason you would see a favorable price variance and an unfavorable quantity variance is because you consumed more materials than your standard allows AND the price you paid for those material was less than your standard price. If you paid more than your standard price, you would have experienced an unfavorable variance in both quantity and price.
What is favourable?
A favorable variance is the difference between the budgeted or standard cost and the actual cost. If the actual cost is less than budgeted or standard cost, it is a favorable variance.
Can the variance be a negative number?
First, we compute the variance by taking the sum of squares and divide that by N which is the number of data points in the same. It is average squared deviation of each number from its mean. The point is a squared number is always positive and N is always positive so the variance must always be non-negative. ( It can be 0). The variance is a measure of the dispersion of a set of data points around their mean value. It would not make sense for it to be negative.
Is variance square of standard deviation?
Yes, the variance of a data set is the square of the standard deviation (sigma) of the set. This means that the variance is always a positive number, even though the data might have a negative sigma value.
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.
The difference between variance and standard deviation?
The SD is the (positive) square root of the variance.
