Question

For the stock prices per share: $9.70, $13.50, $9.50, $7, $7.80, $16.40, $10.20, $9, $14.90, $12, interpret the standard deviation.

Answer 1

The standard deviation measures the amount of variability or dispersion in a set of data, indicating how spread out the values are from the mean. In the context of stock prices, a higher standard deviation suggests that the prices are more volatile or unpredictable.

Step-by-step explanation:

The standard deviation measures the amount of variability or dispersion in a set of data. It tells us how spread out the values are from the mean. In the context of stock prices, a higher standard deviation suggests that the prices are more volatile or unpredictable.

To calculate the standard deviation, you can use the formula:

Step 1: Calculate the mean of the stock prices.

Step 2: Subtract the mean from each stock price and square the result.

Step 3: Find the average of the squared differences.

Step 4: Take the square root of the average to find the standard deviation.

For the given stock prices, if you perform these steps, you will find that the standard deviation is approximately $3.98.