We normally compute the variance using N - 1 in the denominator because
A) it is easier that way.
B) it leads to an unbiased estimate of the sample variance.
C) it leads to an unbiased estimate of the population variance.
D) it overestimates that population variance.

Question

Quizplus · Accepted Answer

Using N - 1 in the denominator when computing the variance of a sample corrects for the bias in the estimation of the population variance, making the estimate unbiased. This adjustment is known as Bessel's correction.

We Normally Compute the Variance Using N - 1 in the Denominator