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From a statistical sense, variance is basically a measure of how spread out the data is from the mean (center) observation. For example, if a company has a mean profit of $100 from all their sales, then we might compute the variance which say for sake of argument is $16. Then what we would do is use the variance number and take the square root to find what is called the standard deviation. In this case the standard deviation would be $4. (The square root of $16).

Then we could say that we are 68% sure that the true profit is within the range of the mean plus or minus the standard deviation. In our example, we would have the range as being 100-4=96 to 100+4=104. So we can say that we are 68% sure that the true profit is within ($96, $104)

This could be extended further for more confidence...

This is just an example of how we use variance. Just think of it as spread.

As for negative profit variance..I think that would simply mean that we are looking at loses. It would be similar to above example, example that our average would be -$100 instead.

Q: What does a negative profit variance mean?

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The variance is always positive. The variance is not directly related to the sign (nor magnitude) of the mean.

what is meant by a negative binomial distribution what is meant by a negative binomial distribution

No. Neither the standard deviation nor the variance can ever be negative.

No.

Yes

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Since Variance is the average of the squared distanced from the mean, Variance must be a non negative number.

The variance is always positive. The variance is not directly related to the sign (nor magnitude) of the mean.

Negative price variance is when the cost is less than budgeted. Volume variance is a variance in the volume produce.

what is meant by a negative binomial distribution what is meant by a negative binomial distribution

A loss

No. Neither the standard deviation nor the variance can ever be negative.

Variance cannot be negative.

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.

No.

No.

hhu

Yes