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Why standard deviation is important?
Why standard deviation is important?
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Solution
Standard deviation:
A standard deviation is a measure of how dispersed the data is in relation to the mean.
The standard deviation can never be negative.
Importance of standard deviation:
- Standard deviation is important because it helps in understanding the measurements when the data is distributed.
- The more the data is distributed, the greater will be the standard deviation of that data.
- The standard deviation is used in finance by business owners to understand risk management and make better business decisions.
- It helps in calculating the margins of error that occur in the survey reports
Standard deviation:
A standard deviation is a measure of how dispersed the data is in relation to the mean.
The standard deviation can never be negative.
Importance of standard deviation:
- Standard deviation is important because it helps in understanding the measurements when the data is distributed.
- The more the data is distributed, the greater will be the standard deviation of that data.
- The standard deviation is used in finance by business owners to understand risk management and make better business decisions.
- It helps in calculating the margins of error that occur in the survey reports
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