When comparing electrical usage among utility customers, a small standard deviation indicates that the mean:
A) is not a typical value in the data set
B) shows that electrical usage is increasing
C) shows that electrical usage is decreasing
D) is a typical value in the data set

Question

Quizplus · Accepted Answer

A small standard deviation indicates that the data points are clustered closely around the mean. This means that the mean is a typical value in the data set. Therefore, option D is correct. Option A is incorrect because a low standard deviation actually indicates that the mean is a typical value in the data set. Options B and C are also incorrect as the standard deviation doesn't indicate which direction electrical usage is moving in.

When Comparing Electrical Usage Among Utility Customers, a Small Standard