If we compare one standard deviation with another distribution of equal mean but larger standard deviation, we could say that:
A)the risk of the distribution is equal.
B)the distribution with the larger standard deviation is riskier.
C)the distribution with the smaller standard deviation is riskier.
D)it is impossible to tell which distribution is riskier because the mean is equal.
E)the distribution with the higher severity would be riskier.

Question

Quizplus · Accepted Answer

The distribution with the larger standard deviation is considered riskier because a larger standard deviation indicates that the data points are spread out more widely from the mean, implying greater variability and unpredictability in the outcomes.

If We Compare One Standard Deviation with Another Distribution of Equal