variance

Definitions (2)

1. A measure of the average distance between each of a set of data points and their mean value; equal to the sum of the squares of the deviation from the mean value.
2. In accounting, the difference between the actual cost and the standard cost for direct material, labor and overhead.

Use variance in a sentence

You should try to lower your variance by getting a few low risk stocks in your portfolio that you can rely on.

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My boss was not concerned about our poor results this quarter because he believed they were the result of variance rather than something we did.

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The variance in the stock performance over the past month was enough to convince the investor that he should find another asset that isn't so volatile.

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