easy · FRM Part 1 Quantitative Analysis
What is the primary difference between the standard deviation of a population (σ) and the standard error of the mean (SE)?
- The standard deviation measures individual dispersion, while the standard error measures the precision of the mean estimate.
- Standard deviation is always smaller than the standard error.
- The standard error is used for populations, while the standard deviation is used for samples.
- There is no difference; they are synonymous terms for risk.
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