What is the importance of standard deviation and 5 uses?

by joel
(london)

please can you give me importance and 5 uses of standard deviation in business?

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Oct 25, 2022
 Standard Deviation's Importance and It's Uses
by: Dee

Standard deviation(SD) is important because it shows the variability of the data in a data set. If numerical data is all very close to the mean, we want to know about it. Conversely, if the data is spread out away from the mean we want to know that too.

Uses for standard deviation:

1. With the SD we can calculate the probability that a piece of data came from our data set.
2. SD gives us an idea about the variability of the data in a data set.
3. Using the mean plus the standard deviation gives us a fairly complete idea of what a data set is like.
4. The SD can give us an idea of what values of data points will come out of the data set.
5. The mean and SD will help us communicate with others about the data set.

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