Bolduc's Law is a principle in the field of statistics that states that the variance of a sum of independent random variables is equal to the sum of their variances. This means that when you combine different random variables, their individual variances contribute to the overall variance of the total. This law is particularly useful in various applications, such as in finance and engineering, where understanding the behavior of combined uncertainties is crucial. By applying Bolduc's Law, analysts can better predict outcomes and assess risks associated with multiple independent factors.