Asked by Jordan Strickland on May 21, 2024
Verified
What is the advantage of the standard deviation over the average deviation?
A) Because the standard deviation requires squaring of deviations before further computation, positive and negative deviations do not cancel out.
B) Because the standard deviation does not require squaring of deviations, it is easy to tell whether deviations are positive or negative.
C) The standard deviation removes the units from the calculation, and delivers a pure number.
D) The standard deviation expresses the average deviation in percentage terms, so that different choices can be more easily compared.
E) The standard deviation transforms subjective probabilities into objective ones so that calculations can be performed.
Standard Deviation
Standard deviation is a statistical measure that quantifies the variability or dispersion of a set of data points or distribution from its mean.
Average Deviation
A statistical measure that describes the average distance of each data point from the mean of the data set.
- Familiarize oneself with the method to ascertain standard deviation as a gauge of risk.
Verified Answer
SB
Shelbe ButnerMay 26, 2024
Final Answer :
A
Explanation :
The advantage of the standard deviation over the average deviation is that because the standard deviation requires squaring of deviations before further computation, positive and negative deviations do not cancel out. This means that the standard deviation is a more accurate measure of dispersion or variability in a data set.
Learning Objectives
- Familiarize oneself with the method to ascertain standard deviation as a gauge of risk.