An economist calculated the variance of monthly household expenses in a city as 10,000.

How should this value be interpreted?

Question

An economist calculated the variance of monthly household expenses in a city as 10,000.  
 
 How should this value be interpreted?

Accepted Answer

This value measures variability, but it cannot be directly interpreted in its current form.

Answer

Monthly household expenses in the city typically differ by around 10,000 euros from the average.

Answer

The average household spends 10,000 euros more or less than the mean.

Answer

None of the options is correct.

Answer

The variability in household expenses is very high.

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