Relationship Between Standard Deviation and Mean
The mean and the standard deviation of a set of data are descriptive statistics usually reported together. In a certain sense, the standard deviation is a "natural" measure of statistical dispersion if the center of the data is measured about the mean. This is because the standard deviation from the mean is smaller than from any other point. The precise statement is the following: suppose x1, ..., xn are real numbers and define the function:
Using calculus or by completing the square, it is possible to show that σ(r) has a unique minimum at the mean:
Variability can also be measured by the coefficient of variation, which is the ratio of the standard deviation to the mean. It is a dimensionless number.
Read more about this topic: Sample Standard Deviation
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