The standard deviation is interpreted as a measure of the average difference between a statistic and a parameter. It calculates the root of the mean squared-difference. Specifically, it reflects the average difference between the sample mean and the population mean.

1. What statistic is often interpreted as providing an estimate of the average difference between a
statistic and a parameter?
Solution
The standard deviation, which finds the root of the mean squared-difference. It is interpreted as a
measure of the average difference between the sample mean (statistic) and population mean
(parameter).