Databricks Certified Data Analyst Associate — Question 51

What describes the variance of a set of values?

Answer options

• A. Variance is a measure of how far a single observed value is from a set of values.
• B. Variance is a measure of how far an observed value is from the variable’s maximum or minimum value.
• C. Variance is a measure of central tendency of a set of values.
• D. Variance is a measure of how far a set of values is spread out from the set's central value.

Correct answer: D

Explanation

The correct answer, D, accurately defines variance as a measure of how much the values in a dataset differ from the average value. Option A is incorrect because it focuses on a single observed value rather than the set. Option B is also wrong since it relates variance to maximum and minimum values instead of the central tendency. Option C misrepresents variance as a measure of central tendency, which it is not.