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Is standard deviation of say two different currencies comparable?
Wiki User
∙ 15y ago
Well, yes and no. Sorry but there's a few "depends" in my answer. If I'm talking about shirts sold in the US and the UK, one set of data is in dollars and another set is sold in pounds and I've calculated means and standard deviations for both, I can convert the units, just like I do any conversions. The units for the mean and standard deviation are the same. So, if my mean shirt costs 15 pounds, and the standard deviation is 1.5 and there are 1.5 pound to every dollar, I can say the average cost of the shirt is 10 dollars with a standard deviation of 1 dollar. Of course the problem is, in many cases, the exchange rate is changing. If this is the case, I must, in the previous example, know how much each shirt cost in pounds and what the exchange rate was on the day it was purchased. The standard deviation can not be easily or correctly converted in this case. Now, in comparing the value of two currencies, the question is a bit more complicated, because we value a currency by its exchange to another currency. If I am comparing let say yen to dollars and yen to euro's, my units are different and a comparison is not proper. If an approximate dollars/ euro conversion factor can be used for the time series, then it is possible to have two comparable standard deviations on representing yen/dollars and a second one yen/dollars from convertd euros.
Wiki User
∙ 15y ago
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When do you use the relative standard deviation instead of standard deviation?
Use %RSD when comparing the deviation for popolations with different means. Use SD to compare data with the same mean.
Can you give details of different currencies?
Different currencies are usually compared against the US dollar or the Euro in Europe. Each of these currencies has a different standard, and when comparing another currency to it, such as the British Pound, the exact value can be determined. All currencies have different values.
What are the assumptions of standard deviation?
The standard deviation is the standard deviation! Its calculation requires no assumption.
How is standard deviation different from mean absolute decation?
If I have understood the question correctly, despite your challenging spelling, the standard deviation is the square root of the average of the squared deviations while the mean absolute deviation is the average of the deviation. One consequence of this difference is that a large deviation affects the standard deviation more than it affects the mean absolute deviation.
What does the sample standard deviation best estimate?
The standard deviation of the population. the standard deviation of the population.
What is standard deviation of 155.45?
The standard deviation is 0.
How do you find deviation mean?
There is no such thing. Maybe your professor meant , Standard Deviation, The Mean. (2 different things.)
If quartile deviation is 24. find mean deviation and standard deviation?
Information is not sufficient to find mean deviation and standard deviation.
Why is the mean the standard partner of the standard deviation?
The mean and standard deviation often go together because they both describe different but complementary things about a distribution of data. The mean can tell you where the center of the distribution is and the standard deviation can tell you how much the data is spread around the mean.
What is the relationship between standard deviation and variance?
Standard deviation is the square root of the variance.
What is the standard deviation of a standard normal distribution?
The standard deviation in a standard normal distribution is 1.
What is the difference between standard error of mean and standard deviation of means?
Standard error of the mean (SEM) and standard deviation of the mean is the same thing. However, standard deviation is not the same as the SEM. To obtain SEM from the standard deviation, divide the standard deviation by the square root of the sample size.
