What does standard deviation measure in a dataset?

Standard deviation is a statistical measure that quantifies the amount of variation or dispersion in a set of values. When it comes to a dataset, standard deviation assesses how much individual data points deviate from the mean (average) value of that dataset. A low standard deviation indicates that the data points tend to be close to the mean, while a high standard deviation suggests they are spread out over a wider range of values. This characteristic is essential in sustainability accounting, as it helps analyze the consistency and reliability of data, which is crucial when evaluating sustainability metrics and their impacts.

The other choices refer to different statistical concepts:

• The total number of data points refers to the size of the dataset, not its variability.

• The median value is the middle point of a dataset when arranged in order, providing a measure of central tendency that differs from the mean.

• The average value is simply the arithmetic mean of the dataset, which highlights the central point rather than the distribution around it.

Thus, understanding what standard deviation measures is vital for interpreting the reliability and variability of data in sustainability assessments.