The variance of a probability distribution is based on the sum of squared differences from the mean multiplied by the probability of X.

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This statement accurately describes the calculation of variance. The formula for variance is Var(X) = ∑(x - μ)² P(x), where x is each possible outcome, μ is the mean, and P(x) is the corresponding probability. The calculation involves squaring the difference between each outcome and the mean, weighting these differences by their probability, and summing the results.

The Variance of a Probability Distribution Is Based on the Sum