Interpreting standard deviation in context
If X = the payout for a single $1 bet, youcan check that mean= $0.70 and standard deviation= $6.58.
How would i interpret the standard deviation in context?? I know how to interpret the mean, it's the players expected gain from a single $1 bet. What about the standard deviation?
My guess is it's how much the gain differs the single dollar bet?? WAS IT RIGHT???
Re: Interpreting standard deviation in context
The standard deviation is indeed how much you expect YOUR result to differ from the mean. Mathematically it is the square root of the squared deviation from the mean. . .but that's really here nor there for what you're meant to know.