An indicator of variability is the variance. By averaging squared departures from the mean, it is determined. Your data set's variance level reveals how widely distributed it is. Therefore, option b is the correct answer.
<h3>What do variances indicate?</h3>
The variation in proportion to the mean increases with the degree of data spread. When a result's actual value differs from what was projected or budgeted, this is known as a variance.
There are both good and negative variations. A favorable variance happens when the actual amount is higher than the amount expected or budgeted.
When the sums allotted in the budget are not met by actuals, the variance is unfavourable. The presence or absence of variance so indicates whether or not the actual performance is developing as anticipated.
Due to the fact that the cause of the variance might differ depending on a number of variables, including changes in transport prices, market costs, production methods, the use of inferior materials, seasonal influences, or even a simple error.
Consequently, more investigation and following measures are required to determine the cause of the variation.
A variance by itself cannot provide the reason why it occurred. The difference between the expected and actual numbers is all that a variance demonstrates.
It doesn't say who is responsible for the deviance. Investigating variations is one of the most crucial tasks after they are found. Variations are often looked at when actual performances drastically depart from expected outcomes.
Therefore, option b: " when the variance should be investigated" is the correct answer.
Check out the link below to learn more about variances;
brainly.com/question/28268911
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