The standard deviation of midterm scores and the final exam are 10.0 and 7.0, respectively. Which of the two exams offers more risk and why?
A) Both the midterm and the final share the same amount of risk.
B) The midterm exam is riskier because the standard deviation is higher.
C) The midterm exam is riskier because the standard deviation is lower.
D) There is not enough information to determine which is the riskier of the two.

Question

Quizplus · Accepted Answer

The standard deviation is a measure of the dispersion or variability in a dataset. A higher standard deviation indicates a wider spread of scores around the mean, implying more variability and hence more risk. Since the midterm has a higher standard deviation (10.0) compared to the final exam (7.0), it is considered riskier.

The Standard Deviation of Midterm Scores and the Final Exam