Standard deviation is a fundamental concept in statistics, representing the amount of variability or spread in a dataset. When we have a set of data points, some of them might deviate from the average, or mean, value more than others. This is where the standard deviation comes in. It gives us an average distance that these data points lie from the mean.
For example, in the normal distribution mentioned in the exercise, the weights of yearling Angus steers have a standard deviation of 84 pounds. This number quantifies how much the weights vary from the mean weight of 1152 pounds.
- Low standard deviation: Data points are close to the mean.
- High standard deviation: Data spreads over a wide range of values.
Standard deviation helps in understanding if the data is tightly clustered around the mean or more dispersed. When finding usual or unusual values, like an unusually low weight, standard deviation assists in setting the boundaries by indicating the typical spread.