Standard Deviation in the Business World Essay

1094 WordsJul 28, 20155 Pages
Standard Deviation use in the Business World Caleb Dobosh, Diane Harge, Yolene Lofton, Brittani Wilson QRB 501 July-Monday, 2015 Garurank Saxena Standard Deviation use in the Business World To many organizations, the statistical concept of standard deviation is important. This paper will consist of four selected articles regarding the subject of standard deviation and how it relates to the business world. There will be an abstract on each article that will focus on the purpose of the study, the research questions, the hypothesis of the study, and the main findings of the study. The first article is titled, “Estimating Assets Class Standard Deviation and Correlations.” The purpose of the study is to show that using standard deviation as a key mean variance for returns in investment portfolios. The article and study show an improved method in a study from 1990 to 2001 which also accounted economic impacts of the recession due to market failure such as Enron. Depending on the type of data, the study focused on specific variables as far back as 1920 in order to obtain the most accurate information. The study also list the frequency of the data they were using such as monthly or quarterly during the study. The study shows “improved method for estimating the covariance matrix, builds on a long line of research demonstrating that investment performance is improved when portfolios are constructed using mean variance optimization and when (as compared to naïve diversification) when input parameters are estimated with greater precision” (Bergmann and Howard). The second article is titled, “Service quality of frontline employees: A profile deviation analysis.” The purpose of the study is to examine the difference of the quality of service to customers by determining the service the face-to-face employees deliver as opposed to the call center or telephone

More about Standard Deviation in the Business World Essay

Open Document