Monday, March 4, 2013

Variance & Variability | Why is the variance a better measure of variability than the range?



Why is the variance a better measure of variability than the range?



















ANSWER
Range is the difference between the highest possible outcome and the lowest possible outcome. Range ignores all outcomes except the highest and lowest, and it does not consider how likely each outcome is. Variance, on the other hand, is based on all the outcomes and how likely they are to occur. Variance weights the difference of each outcome from the mean outcome by its probability, and thus is a more comprehensive measure of variability than the range.

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