0
Because it is in same units as the original data. For example, if you have a sample of lengths, all in centimetres, the sample variance will be in units of centrimetres2 which might be more difficult to interpret but the sample standard deviation with be in units of centimetres, which would be relatively easy to intepret with reference to the data.
Add your answer:
Earn +20 pts
Why standard deviation is better measure of variance?
1. Standard deviation is not a measure of variance: it is the square root of the variance.2. The answer depends on better than WHAT!
What do the variance and the standard deviation measure?
They are measures of the spread of distributions about their mean.
Which measure of variation is appropriate when using the mean?
The variance or standard deviation.
Why do you measure dispersion?
How do we calculate variance
What is difference between absolute measure of dispersion and relative measures of dispersion?
The Absolute Measure of dispersion is basically the measure of variation from the mean such as standard deviation. On the other hand the relative measure of dispersion is basically the position of a certain variable with reference to or as compared with the other variables. Such as the percentiles or the z-score.
Which type of measure of dispersion is mostly used standard deviation or variance?
They are effectively the same but the standard deviation is more popular because the units of measurement are the same as those for the variable.
Why standard deviation is better measure of variance?
1. Standard deviation is not a measure of variance: it is the square root of the variance.2. The answer depends on better than WHAT!
Why standard deviation is best measure of dispersion?
standard deviation is best measure of dispersion because all the data distributions are nearer to the normal distribution.
Why standard deviation is more often used than variance?
Both variance and standard deviation are measures of dispersion or variability in a set of data. They both measure how far the observations are scattered away from the mean (or average). While computing the variance, you compute the deviation of each observation from the mean, square it and sum all of the squared deviations. This somewhat exaggerates the true picure because the numbers become large when you square them. So, we take the square root of the variance (to compensate for the excess) and this is known as the standard deviation. This is why the standard deviation is more often used than variance but the standard deviation is just the square root of the variance.
What does the standard deviation tell us?
standard deviation is the square roots of variance, a measure of spread or variability of data . it is given by (variance)^1/2
What are the units of dispersion?
The units of dispersion are dependent on the units of the data being measured. Common measures of dispersion include variance and standard deviation, which have square units and the same units as the data being measured, respectively. Another measure, such as the coefficient of variation, is a unitless measure of dispersion relative to the mean.
What do the variance and the standard deviation measure?
They are measures of the spread of distributions about their mean.
Which measure of variation is appropriate when using the mean?
The variance or standard deviation.
Does standard deviation and mean deviation measure dispersion the same?
No. The average of the deviations, or mean deviation, will always be zero. The standard deviation is the average squared deviation which is usually non-zero.
Which is not a measure of dispersion range or variance?
Variance
What is measure of variation?
A measure of variation, also called a measure of dispersion, is a type of measurement that details how a set of data is scattered from a central or neutral point of origin. Range, variance and standard deviation are three measures of variation that are commonly used.
What is used as a measure of total risk?
The standard deviation or volatility (square root of the variance) of returns.
