FTCE Professional Education Practice Exam

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What is indicated by a higher value of variance in a dataset?

The data points are closer together
The data points are more spread out
There is no relationship among data
The mean value is higher

The correct answer is: The data points are more spread out

A higher value of variance in a dataset indicates that the data points are more spread out from the mean. Variance measures the degree to which each data point differs from the mean of the dataset. When variance is high, it suggests that there is a wide range of values in the dataset, meaning some data points are significantly higher or lower than the average. This spread can stem from the presence of outliers or simply a large diversity in the data being analyzed. In contrast, a lower variance would suggest that the data points are clustered closely around the mean. Understanding variance is crucial for interpreting the distribution and reliability of the data, particularly in fields like statistics and research.