Definition, Meaning & Synonyms
standard deviation
noun
/ˌstændərd dɪviˈeɪʃən/
Definition
A statistic that measures the dispersion or variability of a set of data points in relation to the mean.
Examples
- The standard deviation of test scores was calculated to understand the performance variability of students.
- A low standard deviation indicates that the data points tend to be close to the mean, while a high standard deviation indicates more spread out values.
- In finance, investors often look at the standard deviation of an asset’s returns to assess its risk level.
Meaning
Standard deviation quantifies how much the values in a data set differ from the average value.
Synonyms
- Dispersion
- Variability
- Spread
