How may variance and standard deviation be applied to a

real-world business-related problem? Provide a specific

application in which these measures are useful.
How may variance and standard deviation be applied to a real-world
business-related problem? Provide a specifc application in which these
measures are useful.
A variance is the diference between the plan amount and the actual
amount. There are accounting and statistical variances.
Accounting variances are typically the diference between the planned or
budgeted cost and the actual cost of an item. This can be an important
consideration in a manufacturing system because the diference in the cost
of materials will either increase or decrease the proft made on the product.
tatistical variances are a bit more di!cult for me to understand. They are a
measure of how something is spread out in a given population. "t might be
interesting to #now how many of the top $%&s have an '(A. "f the number
is statistically signifcant then a hiring o!cial might use that as a
measurement when evaluating a potential new employee.
A standard deviation is a measure of how many answers or people or other
item recorded are close to the average. "n a normal distribution most of the
items fall within one standard deviation of the mean. "f someone is loo#ing
at several products and the )survey says* that the approval for product A is
within one standard deviation then in is something that should be considered
for production. "f it falls outside two standard deviations you should let it
pass. "n manufacturing your products should all meet the specifcations
within one standard deviation and that should be a very small variance.