What Does Standard Deviation Tell You
For instance if a stock has a mean dollar amount of 40 and a standard deviation of 4 investors can reason with 95 certainty that the following closing amount will range between 32 and 48. Standard deviation is a number used to tell how measurements for a group are spread out from the average mean or expected value. Understanding Standard Deviation In Normal Distribution Cross Validated Standard deviation is a statistical measurement that shows how much variation there is from the arithmetic mean simple average. . Standard deviation is a statistical measurement of the amount a number varies from the average number in a series. Standard deviation can show the consistency of an investments return over time. Standard deviation tells us how far on average each data point is from the mean. What is standard deviation. The standard deviation is used in conjunction with the mean to summarise continuous data. Low standard deviation