A business analyst calculated the variance of daily sales for a retail store as 625.

How should this value be interpreted?

Question

A business analyst calculated the variance of daily sales for a retail store as 625.  
 
 How should this value be interpreted?

Accepted Answer

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

Answer

The average deviation of daily sales from the mean is 625 euros.

Answer

The store’s daily sales typically vary by around 625 units from the mean.

Answer

None of the options is correct.

Answer

The store’s sales are extremely inconsistent from day to day.

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