Final answer:
Variance analysis is the statistical method used to identify the degree of difference between planned and actual performance or outcomes, often using an F ratio from an F distribution in the context of ANOVA.
Step-by-step explanation:
The statistical method for identifying the degree of difference between planned and actual performance or outcomes is known as variance analysis. Variance analysis compares two sets of values to understand why they differ by identifying and describing the difference between expected and actual outcomes.
This technique is fundamental in budgeting and financial management, enabling businesses to control costs and performance. In contrast, ratio analysis is used to gauge the financial health of a company by comparing various figures from financial statements, and trend analysis looks at historical data to predict future outcomes.
In the context of statistics, especially when dealing with analysis of variance (ANOVA), variance analysis refers to a method where the F ratio from an F distribution is used. An ANOVA table sums up the statistics to compare the means of a response variable across several groups. The comparison of variances within and among groups leads to insights about the equality of those group means.