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Standard Deviation Haf

The standard deviation is a measure of how dispersed the values in a data set are from the average value. A low standard deviation indicates values are close to the mean, while a high standard deviation means values are more spread out over a large range. The standard deviation is calculated as the square root of the variance. It is commonly used to measure confidence in statistical conclusions and distinguish normal variation from meaningful effects in experiments. In finance, standard deviation is used to measure investment volatility.

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92 views1 page

Standard Deviation Haf

The standard deviation is a measure of how dispersed the values in a data set are from the average value. A low standard deviation indicates values are close to the mean, while a high standard deviation means values are more spread out over a large range. The standard deviation is calculated as the square root of the variance. It is commonly used to measure confidence in statistical conclusions and distinguish normal variation from meaningful effects in experiments. In finance, standard deviation is used to measure investment volatility.

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zidaaan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Cumulative probability of a normal

distribution with expected value 0


and standard deviation 1.
Standard deviation
From Wikipedia, the free encyclopedia
In statistics and probability theory, the standard deviation (SD) (represented by the Greek letter sigma, )
measures the amount of variation or dispersion from the average.
[1]
A low standard deviation indicates that the
data points tend to be very close to the mean (also called expected value); a high standard deviation indicates
that the data points are spread out over a large range of values.
The standard deviation of a random variable, statistical population, data set, or probability distribution is the
square root of its variance. It is algebraically simpler though in practice less robust than the average absolute
deviation.
[2][3]
A useful property of the standard deviation is that, unlike the variance, it is expressed in the
same units as the data. Note, however, that for measurements with percentage as the unit, the standard
deviation will have percentage points as the unit.
In addition to expressing the variability of a population, the standard deviation is commonly used to measure
confidence in statistical conclusions. For example, the margin of error in polling data is determined by
calculating the expected standard deviation in the results if the same poll were to be conducted multiple times. The reported margin of error is
typically about twice the standard deviationthe half-width of a 95 percent confidence interval. In science, researchers commonly report the
standard deviation of experimental data, and only effects that fall much farther than two standard deviations away from what would have been
expected are considered statistically significantnormal random error or variation in the measurements is in this way distinguished from causal
variation. The standard deviation is also important in finance, where the standard deviation on the rate of return on an investment is a measure of
the volatility of the investment.
When only a sample of data from a population is available, the term standard deviation of the sample or sample standard deviation can refer
to either the above-mentioned quantity as applied to those data or to a modified quantity that is a better estimate of the population standard
deviation (the standard deviation of the entire population).
Standard deviation - Wikipedia, the free encyclopedia https://en.wikipedia.org/wiki/Standard_deviation
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