What does the standard deviation indicate in statistical terms?

The standard deviation is a statistical measure that quantifies the amount of variation or dispersion in a set of values. When the standard deviation is low, it indicates that the data points tend to be close to the mean (average) of the set, whereas a high standard deviation signifies that the values are spread out over a wider range. This makes it a crucial tool for understanding how much the individual data points deviate from the mean, thus providing insight into the consistency and reliability of the data.

In practical terms, if you have a dataset with a small standard deviation, it can be interpreted as indicating that the values are fairly uniform and that there is less risk of anomalies or extreme values. Conversely, a larger standard deviation suggests greater diversity in the data, which might necessitate different analytical approaches or considerations in data interpretation.