Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › STD deviation
- This topic has 5 replies, 2 voices, and was last updated 2 years ago by John Moffat.
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- September 11, 2021 at 8:52 am #635501
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.
So sir
How do we identify the spread is low or high
I mean
If it’s -0.8 is it low ?
And if it’s
+0.7 is it high ?September 12, 2021 at 8:25 am #635552The standard deviation is never negative.
The lowest it can be is zero, in which case there is no spread.
There is no maximum, but the higher it is then the more the spread.
September 12, 2021 at 6:21 pm #635603But sir in the graph
We have negative points as well right ?September 13, 2021 at 9:32 am #635639That is not because the standard deviation is negative!
The graph is showing the possible outcomes and they can be higher or lower than the average.
September 13, 2021 at 2:44 pm #635672Ok sir
Then
mean is the average value (or the centre value)… coefficient tells us if the individual salaries are distributed ‘closely’ around the centre(mean) or ‘loosely’ around the centreSeptember 13, 2021 at 4:44 pm #635682Correct.
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