When analysing student spending habits, it’s not enough to just look at the average. Some students spend way more, others far less—so how spread out is this spending? That’s where standard deviation comes in. It helps us measure how much individual spending amounts differ from the average, giving a clearer picture of financial behavior on campus.
What is Standard Deviation?
Standard deviation is a measure of how spread out or dispersed a set of values is from the mean (average). A low standard deviation means that most values are close to the mean, while a high standard deviation indicates greater variability.
Standard Deviation for Grouped Data
We’ll use the standard deviation formula for grouped data:
Where:
- f = frequency
- x = midpoint of the class
- X = mean
- N = total frequency
- f(x - x})2 = squared deviation multiplied by frequency
By calculating the standard deviation of student spending, we discovered just how varied their habits are. This measure adds depth to our understanding beyond just the average, helping campus businesses and planners see the bigger picture. In short, standard deviation tells us not just what students spend—but how differently they spend.
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