Standard Deviations Use In The Business World
Standard Deviation use in the Business World
Abstract
This paper evaluates the role of standard deviation in business. As part of the evaluation, a brief summary of five different peer reviewed papers has been presented. Topics such as, the purpose of the study, the research questions, the hypothesis of the study, and the main findings of the study for the five papers, have been summarized by each of the learning team members.
Standard Deviation use in the Business World
Standard Deviation is a statistical measurement that shows how data are spread above and below the mean. The square root of the variance is the standard deviation (Cleaves, Hobbs, & Noble, 2012). It plays a key role in business management, with one of its benefits being that it simplifies the determination of variability in a given symmetrical data set. In this paper, the role of Standard Deviation in business has been presented by means of summarizing five peer-reviewed papers.
Summary of Paper 1
In order to understand the role of standard deviation in business world, the first paper reviewed is on the topic ‘Risk: An uncommon deviation’, by Scott, D (2006). Standard deviation has a critical role to play in evaluating the risks involved in the field of business investments. Below is the summary of the findings from the paper:
Purpose of the Study
The paper focused on understanding the role of using standard deviation in estimating the risks involved in investments. According to Scott (2006), historically few, if any, real world investors naturally think in terms of standard deviations when they think about risk. The traditional risk models did not take into account standard deviation. In this paper, the author has evaluated the impact of using standard deviation in enhancing risk management strategies.
Research Questions
The key questions discussed within this paper are
1. Does use of standard deviation help in estimating all possible outcomes involved in business
Abstract
This paper evaluates the role of standard deviation in business. As part of the evaluation, a brief summary of five different peer reviewed papers has been presented. Topics such as, the purpose of the study, the research questions, the hypothesis of the study, and the main findings of the study for the five papers, have been summarized by each of the learning team members.
Standard Deviation use in the Business World
Standard Deviation is a statistical measurement that shows how data are spread above and below the mean. The square root of the variance is the standard deviation (Cleaves, Hobbs, & Noble, 2012). It plays a key role in business management, with one of its benefits being that it simplifies the determination of variability in a given symmetrical data set. In this paper, the role of Standard Deviation in business has been presented by means of summarizing five peer-reviewed papers.
Summary of Paper 1
In order to understand the role of standard deviation in business world, the first paper reviewed is on the topic ‘Risk: An uncommon deviation’, by Scott, D (2006). Standard deviation has a critical role to play in evaluating the risks involved in the field of business investments. Below is the summary of the findings from the paper:
Purpose of the Study
The paper focused on understanding the role of using standard deviation in estimating the risks involved in investments. According to Scott (2006), historically few, if any, real world investors naturally think in terms of standard deviations when they think about risk. The traditional risk models did not take into account standard deviation. In this paper, the author has evaluated the impact of using standard deviation in enhancing risk management strategies.
Research Questions
The key questions discussed within this paper are
1. Does use of standard deviation help in estimating all possible outcomes involved in business
References: Acker, D. (2002). Implied Standard Deviations and Post-earnings Announcement Volatility. Journal Of Business Finance & Accounting, 29(3/4), 429. Andreas, J., & Pascal, J. (2013). Forecasting the pulse: How deviations from regular patterns in online data can identify offline phenomena. Internet Research, 23(5), 589 - 607. doi:http://dx.doi.org/10.1108/IntR-06-2012-0115 Cleaves, C., Hobbs, M., & Noble, J. (2012). Business Math (9th ed.). Upper Saddle River, NJ: Prentice Hall. Retrieved from VitalBook file. Scott, D. (2006). Risk: an uncommon deviation. JASSA, n.a.(2), 30. Retrieved from http://search.proquest.com.ezproxy.apollolibrary.com/docview/89211018?pq-origsite=summon Mei, Z., & Grummer-Strawn, L. (2007). Standard deviation of anthropometric Z-scores as a data quality assessment tool using the 2006 WHO growth standards: A cross country analysis. World Health Organization.Bulletin of the World Health Organization, 85(6), 441-8. Retrieved from http://search.proquest.com/docview/229556887?accountid=458