What is the definition of Standard deviation and how do you calculate it?
- Posted on November 21, 2019
- Financial Terms
- By admin admin
Standard deviation is a mathematical measure which approximates the average deviation of any given data point from the mean of the entire data set. For example, if a data set of 100 has a standard deviation of 5 and a mean of 50, then on average no value will be outside the range of 45-55.
The calculation for standard deviation is simply the square root of the variance.
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