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Why do we use standard deviation instead of variance in interpretation?

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Answer

  • Variance has squared units (dollars2,  meters2)(\mathrm{dollars}^{2}, \;\mathrm{meters}^{2}), which are unintuitive.
  • Standard deviation is the square root of variance and shares the units of the data, so it can be plotted alongside the mean and interpreted directly.
  • Statistical theory tends to use variance because it decomposes nicely (sum of independent variances), while reporting typically uses SD.
Check yourself — multiple choice
  • SD has squared units
  • SD has the same units as the data; variance has squared units
  • SD cannot be negative because it is complex
  • Variance is always in the same units as the data

SD is in the data's units; variance is in squared units.

#descriptive#variance

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