# Question: Is It Possible To Obtain A Negative Value For Variance Or Standard Deviation?

## What is positive and negative variance?

A favorable budget variance refers to positive variances or gains; an unfavorable budget variance describes negative variance, indicating losses or shortfalls.

Budget variances occur because forecasters are unable to predict future costs and revenue with complete accuracy..

## Is it possible to get a negative variance?

Variance can be negative. A variance value of zero indicates that all values within a set of numbers are identical. All variances that are not zero will be positive numbers.

## Is it possible to obtain a negative value for SS variance and standard deviation?

We cannot obtain negative variance because variance is defined as sum of squares of deviations from mean. Each of squared value is non-negative, and their sum is also nonnegative. Standard deviation value is defined as positive square root of variance, hence standard deviation cannot be negative.

## Is the standard deviation always positive?

Standard deviation measures how spread out the values in a data set are around the mean. More precisely, it is a measure of the average distance between the values of the data in the set and the mean. … The standard deviation is always a positive number and is always measured in the same units as the original data.

## Can standard deviation be larger than variance?

Well, the standard deviation is the square root of the variance. Thus, the variance is the square of the standard deviation. Whether the standard deviation is larger than the variance depends on whether the variance is less than or greater than one. But, this depends on the units you use.

## 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.

## Is it possible to obtain a negative value for the standard deviation?

Standard deviation is the square root of variance, which is the average squared deviation from the mean and as such (average of some squared numbers) it can’t be negative.

## What does it mean when variance is negative?

Negative variances are the unfavorable differences between two amounts, such as: The amount by which actual revenues were less than the budgeted revenues. The amount by which actual expenses were greater than the budgeted expenses. … The negative variance means spending more than the budget.

## Is the variance always positive?

It measures the degree of variation of individual observations with regard to the mean. It gives a weight to the larger deviations from the mean because it uses the squares of these deviations. A mathematical convenience of this is that the variance is always positive, as squares are always positive (or zero).