Variance Decomposition

Rarely Tested

Variance Decomposition

For any random variables with finite variance:

$$\operatorname{Var}(X)=E[X^2]-(E[X])^2$$

Usage

- Used as the fundamental decomposition of variance.

No related questions available for this formula yet.

Go back to topics

Join CAT 2026 course by 5-Time CAT 100%iler

Start your IIM journey with the right preparation and crack CAT 2026.