Question
When using descriptive statistics, which measure is best
for understanding data variability?Solution
Standard deviation is the most informative measure of data variability because it quantifies the average deviation of each data point from the mean. By providing insight into the spread of data values around the mean, standard deviation helps analysts understand how clustered or dispersed the data is, which is crucial for interpreting patterns and making comparisons between datasets. Standard deviation is particularly valuable in assessing consistency and identifying outliers, making it essential in descriptive statistical analysis. The other options are incorrect because: • Option 1 (mean) is a central tendency measure, not a measure of variability. • Option 2 (median) indicates the central value but not data spread. • Option 3 (mode) is useful for frequency analysis but not for assessing variability. • Option 5 (range) provides a simple variability measure but lacks the detail of standard deviation, as it only considers extremes.
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