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What is Standard Deviation? – Data Science for Finance

What is Standard Deviation? Christopher Engman guides you through the jungle of data science terms.

Standard deviation, t-value or variance and a few other terms, are all different ways of describing the spread of the data set. If you have sales on the y-axis and retargeting on the x-axis, then you can look at how the retarding spend is influencing the various data points on sales. If the data points are very spread out it means you have a high standard deviation.

If they’re all concentrated along the line, which is the multiplier line or the slope line, then you have a very low standard deviation. If the data points are very centered around your description of that variable, then you have a low standard deviation.