The standard deviation is the _____ of the variance
The standard deviation is the _____ of the variance
A: Square
B: Square root
C: Cube
D: Cube root
Step 1 standard deviation measures spread of data. Step 2 variance is average of squared differences from the mean. Step 3 standard deviation is the square root of variance. For example if variance is 16 then standard deviation is 4. Step 4 standard deviation is widely used because it is in the same unit as the data which makes interpretation easy. It shows how much data varies around the mean. Step 5 in finance economics and science standard deviation is used to measure risk and uncertainty.