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Standard deviation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Standard deviation

  • This topic has 5 replies, 2 voices, and was last updated 4 years ago by AvatarJohn Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • August 31, 2021 at 7:30 am #633589
    Avatarjohnbriane
    Member

    Sir if a standard deviation is 2.6789

    Then
    What does that imply

    Secondly
    Should the standard deviation be closer to one ? Or far away from one
    Which is better ?

    August 31, 2021 at 8:40 am #633612
    AvatarJohn Moffat
    Keymaster

    On its own it implies nothing. It is simply a measure of the average spread of the distribution.

    The lower the standard deviation then the less the spread is (if it is 0 then there is no spread at all). The higher the standard deviation then the more the spread. It is not a question of being better or worse. ‘1’ is of no relevance whatsoever.

    Everything needed for the exam in respect of all of this is explained in my free lectures.

    August 31, 2021 at 11:01 am #633641
    Avatarjohnbriane
    Member

    What is the benefit for the company by knowing what a standard deviation is sir

    August 31, 2021 at 5:52 pm #633674
    AvatarJohn Moffat
    Keymaster

    They can then estimate the probability of different things happening as I explain the the lectures on the normal distribution.

    August 31, 2021 at 6:19 pm #633683
    Avatarjohnbriane
    Member

    Ok sir thank you

    August 31, 2021 at 7:00 pm #633699
    AvatarJohn Moffat
    Keymaster

    You are welcome 🙂

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘Standard deviation’ is closed to new replies.

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