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2. In risk, the average deviation of a set of data points from their mean.
- the difference between budgeted and actual results (see BUDGETING), or between STANDARD COSTS/revenues and actual costs/revenues. Variances can be:
- adverse or negative when actual revenues fall short of budget or standard, or when actual costs exceed budget or standard;
- favourable or positive when actual revenues exceed budget or standard, or when actual costs are less than budget or standard.
- a measure of variation within a group of numerical observations, specifically the average of the squared deviations of the observations from the group AVERAGE.
See STANDARD DEVIATION.
Permission to use a property in a manner that does not meet current zoning requirements.In order to gain a variance,the property owner usually has to show a hardship on the property—not on the owner—if the requested use is not allowed. It is considered a hardship if the property will otherwise remain vacant or if a structurally sound improvement must be demolished to allow some other use. Buyers with a signed purchase contract can usually petition for a variance; this is commonly one of the steps in a due diligence plan that must be completed in a satisfactory manner before the buyer will purchase property.