Standard Deviation Calculator
Default values: Average American household income distribution sample (USD)
Understanding Standard Deviation
What is Standard Deviation?
Standard deviation (σ) measures the amount of variation or dispersion in a dataset. A low standard deviation indicates that the values tend to be close to the mean, while a high standard deviation indicates that the values are spread out over a wider range.
Key Concepts
- Population vs Sample: Choose population when you have all possible data points, and sample when working with a subset of data.
- Confidence Intervals: Indicates the reliability of an estimate. A 95% confidence interval means we can be 95% certain that the true population parameter falls within the interval.
- Normal Distribution: Many natural phenomena follow a normal distribution, where data tends to cluster around the mean.
Common Applications
- Finance: Measuring investment risk and volatility
- Quality Control: Monitoring manufacturing processes
- Research: Analyzing experimental results
- Education: Evaluating test scores