Purchase Solution

variance and standard deviation - a real world example

Not what you're looking for?

Ask Custom Question

How may variance and standard deviation be applied to a real-world business-related problem? Provide a specific application in which these measures are useful.

Purchase this Solution

Solution Summary

variance and standard deviation - a real world example

Solution Preview

Variances and standard deviations are very useful in business. Among many of their uses, finance is probably the single most important area where these are needed.

First, you should know that the square of standard deviation is variance, so they are essentially the same. I will provide an example of how they are used in business (in marketing), and I will explain why variance and s.d. are slightly differently.

Consider a marketer, who wants to sell a product to consumers. Suppose that the current price of this good is $10. Of course, not everyone will want to pay $10. If one really needs this ...

Purchase this Solution


Free BrainMass Quizzes
Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.