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Refer to the sample statistics from Exercise 5 and determine whether any of the house prices below are unusual. Explain your reasoning.
d. \$147,000
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3. Describing Data Numerically
Interpreting Standard Deviation
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In the context of a dataset, what does a high standard deviation indicate about the data values?
A
The data values are tightly clustered around the mean (low variability).
B
The data values are more spread out from the mean (greater variability).
C
The dataset contains no outliers.
D
The mean of the dataset must be close to zero.
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Understand that the standard deviation is a measure of how spread out the data values are around the mean of the dataset.
Recall that a low standard deviation means data points are close to the mean, indicating low variability.
Recognize that a high standard deviation means data points are more spread out from the mean, indicating greater variability.
Note that the presence or absence of outliers is not directly determined by the standard deviation alone.
Understand that the value of the mean does not have to be close to zero for the standard deviation to be high or low; they are independent concepts.
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