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Students Should Recognize the Differences Between Numerical Data from Interval

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Essay

Students should recognize the differences between numerical data from interval or ratio scales and non-numerical data from nominal or ordinal scales.


Definitions:

Standard Deviation

A measure of the amount of variability or dispersion of a set of values; used in finance to represent the volatility of an investment.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Returns

The profit or loss derived from an investment, often expressed as a percentage of the investment amount.

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