Quantitative Literacy Practice Exam 2025 – Comprehensive Preparation Guide

The standard deviation is a key statistical measure that quantifies the amount of variation or dispersion in a set of data points. When a data set has a low standard deviation, it indicates that the data points tend to be close to the mean (average) value, showcasing less variability. Conversely, a high standard deviation suggests that the data points are spread out over a wider range, indicating greater variability in the data. This characteristic makes the standard deviation particularly useful for understanding how consistent or variable the data is relative to its mean.

In contrast, the average value, median value, and mode pertain to measures that describe central tendencies rather than dispersion. While they provide insights into where data points cluster, they do not convey how far the data points are spread from that central point. Therefore, the understanding of data distribution and variability provided by standard deviation is crucial for a comprehensive analysis of data sets.