A couple of questions

What is considered low variance?

Distributions with CV < 1 (such as an Erlang distribution) are considered low-variance, while those with CV > 1 (such as a hyper-exponential distribution) are considered high-variance.

What is a low variance?

A model with low variance means sampled data is close to where the model predicted it would be. A model with high variance will result in significant changes to the projections of the target function.

What is considered a high or low variance?

A variance of zero indicates that all of the data values are identical. All non-zero variances are positive. A small variance indicates that the data points tend to be very close to the mean, and to each other. A high variance indicates that the data points are very spread out from the mean, and from one another.

What is a low variance number?

A set of data with low variance (relative) is dominated at the mean, and a set of high variance is spread out and deviates significantly from the mean. A high variance curve will be flat relative to a low variance curve. Variance is mathematically defined as the expected value of the squared deviation from the mean.

What is an acceptable level of variance?

What are acceptable variances? The only answer that can be given to this question is, “It all depends.” If you are doing a well-defined construction job, the variances can be in the range of ± 3–5 percent. If the job is research and development, acceptable variances increase generally to around ± 10–15 percent.

Is a small variance good?

Low variance is associated with lower risk and a lower return. High-variance stocks tend to be good for aggressive investors who are less risk-averse, while low-variance stocks tend to be good for conservative investors who have less risk tolerance. Variance is a measurement of the degree of risk in an investment.

What does a variance of 1 mean?

If the mean is 100,000 then no. The variance of 1 million means the standard deviation is 1000 or just 1% of the mean. We know that the probability is about 0.95 that a sample will be within plus or minus 2% of the mean. In other words, almost all samples will be extremely close in value to the mean.

What is a good variance?

As a rule of thumb, a CV >= 1 indicates a relatively high variation, while a CV < 1 can be considered low. This means that distributions with a coefficient of variation higher than 1 are considered to be high variance whereas those with a CV lower than 1 are considered to be low-variance.