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STATISTICS-BASICS5 MIN READ

Variation Before Verdict

Explain why spread changes the interpretation of an average.

The statistic should match the decision, not the slide template. Spread changes the action Variation is not decoration around the real number; it is part of the process. Two teams can share an eight-day average while one delivers every case in seven to nine days and the other swings from one day to four weeks. The first process needs capacity planning; the second needs diagnosis. The mechanism is risk. Spread describes how much a future observation may differ from the center. Standard deviation works well for roughly symmetric numeric data. Interquartile range resists outliers. Percentiles tell service-level stories such as…

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