We have previously discussed the importance of estimating uncertainty in our measurements and incorporating it into data analysis 1. To know the extent to which we can generalize our observations, we ...

Variance is a measurement of the spread between numbers in a data set. Investors use the variance equation to evaluate a portfolio’s asset allocation.

This suggests that there is a substantial amount of variability or noise within the data. Consequently, estimates or predictions derived from the data are likely to ...