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Why is the sample variance divided by $n-1$ instead of $n$?

\begin{equation}
s^2 = \frac{\sum(x - \bar{x})^2}{n-1}.
\end{equation}
in Data Science & Statistics by Diamond (81,060 points) | 172 views

1 Answer

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This is necessary to correct for the bias in the sample variability.

If not corrected, the sample variability will be biased and consistently underestimates the population variability and variance.

Dividing by a smaller value (n - 1) increases the value of the sample variance, thereby making it an accurate and unbiased estimate of the population variance.
by Diamond (40,336 points)
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