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Standard deviation
/stˈandəd dˌiːvɪˈeɪʃən/
/stˈændɚd dˌiːvɪˈeɪʃən/Standard deviation
01
a measure of how much the values in a set typically differ from the average
Example
In finance, a high standard deviation of returns suggests higher volatility.
The standard deviation of test scores showed that most students scored around the average.
A low standard deviation indicates that the data points are close to the mean.
Example
In finance, a high standard deviation of returns suggests higher volatility.
The standard deviation of test scores showed that most students scored around the average.
A low standard deviation indicates that the data points are close to the mean.
Calculating the standard deviation helps understand the spread of the data set.
A standard deviation of zero means all the values are identical.
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