Question

The manager of a newly opened book store wants to estimate the

average expenditure of his customers using a confidence interval.
He estimates that the population standard deviation is
approximately $2

Answer 1

When the standard deviation is greater than the average, it means that the data points are more spread out.

Step-by-step explanation:

When the standard deviation is greater than the average, it means that the data points are more spread out, resulting in a larger variation from the average.

For example, let's consider heights of a group of people. If the standard deviation is greater than the average height, it indicates that there is a wide range of heights within the group, with some people significantly taller or shorter than the average.

On the other hand, if the standard deviation is smaller than the average, it suggests that the data points are closer to the average, indicating less variation.