Keyword Analysis & Research: normalization of standard deviation


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Frequently Asked Questions

What does the mean and standard deviation tell you?

Standard deviation is a number used to tell how measurements for a group are spread out from the average (mean), or expected value. A low standard deviation means that most of the numbers are close to the average. A high standard deviation means that the numbers are more spread out.

When to normalize vs standardize?

Standardize generally means changing the values so that the distribution’s standard deviation equals one. Scaling is often implied. Normalize can be used to mean either of the above things (and more!). I suggest you avoid the term normalize, because it has many definitions and is prone to creating confusion.

What are the types of standard deviation?

Standard deviation is a statistical measurement of how far a data point is spread from the average value. Standard deviation is one of the key methods that financial analysts and portfolio managers use to determine investment risk. There are two types of standard deviation: population and sample. Population deviation is the most common.


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