Glossary · Micro · Risk and behavioral economics
Variance and standard deviation
Measures of how spread out a gamble’s outcomes are around its expected value. Variance is the average squared distance from the mean, standard deviation is its square root, and a bigger number means more risk.
Also called: standard deviation, risk
Related terms
More from risk and behavioral economics
Definitions are the start
See the term used, not just defined.
The full course teaches every term in context, with worked examples, interactive graphs and practice questions that remember what you get wrong.