![what is term for probability weighted standard deviation what is term for probability weighted standard deviation](https://cdn.numerade.com/ask_images/de4ec21b2b82430e86a544a1649fb162.jpg)
The square root of this result, equal to 17.28, is the standard deviation. Their weighted mean square is obtained exactly as above: multiply each squared residual by its volume, add them up, and divide by the total volume. The standard deviation is similarly computed: the residual prices are (23 - 36.81), (45 - 36.81), and (60 - 36.81). (In a now-deleted answer, showed us that the unweighted mean is 42.67 and the fweighted mean is 37.00.) Notice that this is not computed by either the fweights nor the pweights options. Thus, the average price per unit must equal 6137 / 116.7 = 36.81 Euros. The total volume is 100 K/month * 1 month + 11 K/month * 1 month + 55.7 K/month * 1 month = 166.7 K units. Jan product B: 11 K/month * 1 month * 45 Euros = 495 000 Eurosįeb product B: 55.7 K/month * 1 month * 60 Euros = 3342 000 Euros Then the totals paid in the three months are Jan product A: 100 K/month * 1 month * 23 Euros = 2300 000 Euros Adopting hypothetical units of measurement in order to make the numbers concrete, and pretending that all three records are to be summarized (even though they pertain to two different products), suppose the data give volumes in thousands of units sold per month and the prices are in Euros. When dealing with such weights, it's easiest to compute totals first.
![what is term for probability weighted standard deviation what is term for probability weighted standard deviation](https://www.accaglobal.com/content/dam/acca/global/satechnical/PortfoliotheoryFig6.gif)
These are descriptive statistics intended to convey information about price ( p) where "volume" ( q) apparently describes how much was sold at each price.