Actuarial Outpost Variance
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 View Poll Results: Which represents variance? Variance = E[(X-E[X])^2] = E[X^2] - E[X]^2 74 60.16% Variance = Amount this month - Amount last month 6 4.88% Both of the above 34 27.64% Variance = E[42] 9 7.32% Voters: 123. You may not vote on this poll

#1
02-08-2016, 11:05 AM
 whoanonstop Member Non-Actuary Join Date: Aug 2013 Location: Los Angeles, CA Studying for Spark / Scala College: College of William and Mary Favorite beer: Orange Juice Posts: 5,899 Blog Entries: 1
Variance

Which one of these represents variance?
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#2
02-08-2016, 11:14 AM
 mathmajor Member SOA AAA Join Date: Dec 2010 Location: Nowhere in particular Studying for Japanese College: B.S. Applied Math Favorite beer: La Croix Grapefruit Posts: 12,100

Actual vs expected
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Quote:
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#3
02-08-2016, 11:31 AM
 MightySchoop Member CAS AAA Join Date: Aug 2009 Location: Insula Primalis Posts: 7,225

This.
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#4
02-08-2016, 12:03 PM
 JMO Carol Marler Non-Actuary Join Date: Sep 2001 Location: Back home again in Indiana Studying for Nothing actuarial. Posts: 37,643

Quote:
 Originally Posted by whoanonstop Which one of these represents variance?
It depends on context.
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Carol Marler, "Just My Opinion"

Pluto is no longer a planet and I am no longer an actuary. Please take my opinions as non-actuarial.

My latest favorite quotes, updated Nov. 20, 2018.

Spoiler:
I should keep these four permanently.
Quote:
 Originally Posted by rekrap JMO is right
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 Originally Posted by campbell I agree with JMO.
Quote:
 Originally Posted by Westley And def agree w/ JMO.
Quote:
 Originally Posted by MG This. And everything else JMO wrote.
And this all purpose permanent quote:
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 Originally Posted by Dr T Non-Fan Yup, it is always someone else's fault.
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All purpose response for careers forum:
Quote:
 Originally Posted by DoctorNo Depends upon the employer and the situation.
Quote:
 Originally Posted by El Actuario Therapists should ask the right questions, not give the right answers.
Quote:
 Originally Posted by Sredni Vashtar I feel like ERM is 90% buzzwords, and that the underlying agenda is to make sure at least one of your Corporate Officers is not dumb.
#5
02-08-2016, 12:03 PM
 JMO Carol Marler Non-Actuary Join Date: Sep 2001 Location: Back home again in Indiana Studying for Nothing actuarial. Posts: 37,643

Quote:
 Originally Posted by MightySchoop This.
Yeah, that's what I thought when I saw the thread title.
__________________
Carol Marler, "Just My Opinion"

Pluto is no longer a planet and I am no longer an actuary. Please take my opinions as non-actuarial.

My latest favorite quotes, updated Nov. 20, 2018.

Spoiler:
I should keep these four permanently.
Quote:
 Originally Posted by rekrap JMO is right
Quote:
 Originally Posted by campbell I agree with JMO.
Quote:
 Originally Posted by Westley And def agree w/ JMO.
Quote:
 Originally Posted by MG This. And everything else JMO wrote.
And this all purpose permanent quote:
Quote:
 Originally Posted by Dr T Non-Fan Yup, it is always someone else's fault.
MORE:
All purpose response for careers forum:
Quote:
 Originally Posted by DoctorNo Depends upon the employer and the situation.
Quote:
 Originally Posted by El Actuario Therapists should ask the right questions, not give the right answers.
Quote:
 Originally Posted by Sredni Vashtar I feel like ERM is 90% buzzwords, and that the underlying agenda is to make sure at least one of your Corporate Officers is not dumb.
#6
02-08-2016, 12:26 PM
 whoanonstop Member Non-Actuary Join Date: Aug 2013 Location: Los Angeles, CA Studying for Spark / Scala College: College of William and Mary Favorite beer: Orange Juice Posts: 5,899 Blog Entries: 1

The reason for this thread is that I've yet to see variance defined in a business environment as the mathematical construct. It is almost always a change or difference from month to month.

We sold 40 oranges last month and 50 oranges this month. Our "variance" is 10 for oranges sold.

-Riley
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#7
02-08-2016, 12:36 PM
 JMO Carol Marler Non-Actuary Join Date: Sep 2001 Location: Back home again in Indiana Studying for Nothing actuarial. Posts: 37,643

A chief actuary I used to work with always called the differences "delta." The company compared results to prior year and to plan, rather than to prior month. FWIW.
__________________
Carol Marler, "Just My Opinion"

Pluto is no longer a planet and I am no longer an actuary. Please take my opinions as non-actuarial.

My latest favorite quotes, updated Nov. 20, 2018.

Spoiler:
I should keep these four permanently.
Quote:
 Originally Posted by rekrap JMO is right
Quote:
 Originally Posted by campbell I agree with JMO.
Quote:
 Originally Posted by Westley And def agree w/ JMO.
Quote:
 Originally Posted by MG This. And everything else JMO wrote.
And this all purpose permanent quote:
Quote:
 Originally Posted by Dr T Non-Fan Yup, it is always someone else's fault.
MORE:
All purpose response for careers forum:
Quote:
 Originally Posted by DoctorNo Depends upon the employer and the situation.
Quote:
 Originally Posted by El Actuario Therapists should ask the right questions, not give the right answers.
Quote:
 Originally Posted by Sredni Vashtar I feel like ERM is 90% buzzwords, and that the underlying agenda is to make sure at least one of your Corporate Officers is not dumb.
#8
02-08-2016, 12:37 PM
 Ron Weasley Member CAS AAA Join Date: Oct 2001 Studying for naught. Favorite beer: Butterbeer Posts: 8,623

Quote:
 Originally Posted by whoanonstop The reason for this thread is that I've yet to see variance defined in a business environment as the mathematical construct. It is almost always a change or difference from month to month. We sold 40 oranges last month and 50 oranges this month. Our "variance" is 10 for oranges sold. -Riley
That's okay. The "multiplication principle" is always an illustration of exponentiation.
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“Fantasy is escapist, and that is its glory. If a soldier is imprisioned by the enemy, don't we consider it his duty to escape?. . .If we value the freedom of mind and soul, if we're partisans of liberty, then it's our plain duty to escape, and to take as many people with us as we can!”
― J.R.R. Tolkien
#9
02-08-2016, 12:48 PM
 clarinetist Member Non-Actuary Join Date: Aug 2011 Studying for Rcpp, Git Posts: 6,886

Quote:
 Originally Posted by JMO A chief actuary I used to work with always called the differences "delta." The company compared results to prior year and to plan, rather than to prior month. FWIW.
I've heard this.

At a previous company, when talking about differences in general, I heard "variance" used.
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#10
02-08-2016, 01:20 PM
 snikelfritz Member Join Date: Jun 2011 Location: Yep Studying for Nope Favorite beer: Yep Posts: 27,409

Quote:
 Originally Posted by JMO It depends on context.
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