Question

Why standard deviation is important?

Answer 1

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