Standard deviation tells you how spread out the numbers are in your data set. It reveals whether the data points are close to the mean or scattered over a wider range.
To calculate standard deviation:
- First, find the mean of the data set.
- Next, subtract the mean from each data point and square the result.
- Average these squared differences, and finally take the square root of this average.
Consider the data sets with a mean of 10: [8, 9, 10, 11, 12], [7, 9, 10, 11, 13], and [5, 9, 10, 11, 15].
The standard deviations of these are 1.414, 2, and 3.162, respectively.
The higher the standard deviation, the more spread out the data is. If it's low, the numbers are close to the mean.
- A high standard deviation indicates wide data variance.
- A low standard deviation suggests that the data points are near the mean.
Understanding standard deviation helps in assessing the reliability and consistency of the data.