Standard deviation and variance are two basic mathematical concepts that have an important place in various parts of the financial sector, from accounting to economics to investing. Both measure the ...

Discover how to harness volatility measurements like standard deviation and beta to enhance your investment strategy and ...

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For a given data set, standard deviation measures how spread out the numbers are from an average value. This measurement of average variance has a prominent place in many fields related to statistics, ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

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 ...

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 ...

In response to my article, Is the Stock Market Too Concentrated?, which relied upon standard-deviation calculations to assess investment risk, a reader wrote: “My problem [with your argument] is ...

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