AP PSYCHOLOGY

Detailed explanation-1: -The variance measures the average degree to which each point differs from the mean. While standard deviation is the square root of the variance, variance is the average of all data points within a group. The two concepts are useful and significant for traders, who use them to measure market volatility.

Detailed explanation-2: -If you average the absolute value of sample deviations from the mean, you get the mean or average deviation. If you instead square the deviations, the average of the squares is the variance, and the square root of the variance is the standard deviation.

Detailed explanation-3: -The standard deviation is the average amount of variability in your dataset. It tells you, on average, how far each value lies from the mean. A high standard deviation means that values are generally far from the mean, while a low standard deviation indicates that values are clustered close to the mean.