Variance : In statistics, variance is defined as the deviation of a data set from its mean value or average value. When the variances are greater, the numbers in the data set are farther from the mean. When the variances are smaller, the numbers are nearer the mean. Variance is calculated as follows:
Here, X represents an individual data point, U represents the average of multiple data points, and N represents the total number of data points.
Covariance : Covariance is another common concept in statistics, like variance. In statistics, covariance is a measure of how two random variables change when compared with each other. Covariance is calculated as follows:
Here, X represents the independent variable, Y represents the dependent variable, x-bar represents the mean of the X, y-bar represents the mean of the Y, and N represents the total number of data points in the sample.
