Standard deviation is a metric that shows the variability of a security’s returns over time. It can be used to gauge volatility based on past performance and compare a future return to past returns.

For example, suppose that the manufacturing process described in the previous example produces engines whose weights are normally distributed with a mean of 1250 and a standard deviation of 12. The ...

You're currently following this author! Want to unfollow? Unsubscribe via the link in your email. Standard deviation is a concept that's thrown around frequently in finance. So what is it? When ...

An animated guide explaining how the standard devition can give you a clearer picture of a sample than averages alone. An example involving zoo keepers and some very dangerous animals demonstrates ...

The following data set (WIRE) contains breaking strength measurements recorded in pounds per inch for 25 samples from a metal wire manufacturing process. The subgroup sample sizes vary between 3 and 7 ...

Flickr via Google Images Standard deviation is a concept that's thrown around frequently in finance. So what is it? When working with a quantitative data set, one of the first things we want to know ...