What does it mean by higher potential variability
in Statistics / Variance
What is it mean by variance corrected itself to reflect higher potential variability? Kindly Explain
2 answers ( 0 marked as helpful)
It means that the dataset contains more higher number than mean, In 2nd case where 5 was also 3x and 1 was also 3x, higher number would move the mean as well as variance towards itself. you can imagine these numbers plotted on a number line where mean and variance could vary according to data introduction in either direction
but in 5:26 what is written on the screen was: our sample variance has rightfully corrected upwards in order to reflect the higher potential variability, and it was pointing to the first data set, Also what is meant by mean and variance could vary according to data introduction in either direction?