In this situation we can compute the mean and variance of a sample (and, more generally, any higherorder moments) using a streaming algorithm. Many possibilities exist but because of the incremental computation particular attention needs to be paid to numerical stability. This formula is used in the construction of a pairwise algorithm son computing the valiance. Other applications are discussed as well including the use of updating formulae in a parallel computing environment. The first approach is to compute the statistical moments by separating the data into bins and then computing the moments from the geometry of the resulting histogram, which effectively becomes a onepass algorithm for higher moments.
