Standard deviation is a statistical measure that is used to quantify the amount of variation or dispersion of a set of data values. A standard deviation close to 0 indicates that the data points tend to be very close to the average rate we display. A high standard deviation indicates that the data points are spread out over a wider range of values.
How this correlates to RateView is we have a number of records we use to calculate an average rate. If the rates we use for the average are close to the average rate we display then the standard deviation will be close to 0. If they are closer to the high and low for that lane then you will see a higher standard deviation.
For Example:
Equipment Type: Van
Origin: Eldersburg, MD
Destination: Shrewswbury, MA
Average Rate Per Mile: 3.03
Lowest Rate: 2.58
Highest Rate: 3.53
Records: 51
Standard Deviation: .68
If you see a higher Standard Deviation number this means that the majority of the rates used to calculate the average rate were further away from the average rate. In the sample above the average rate per mile is 3.03. If the records we used to show the average rate were closer to the highest rate which is 3.53 or closer to the lowest rate 2.58 then the standard deviation will be on the high side.
If you see a lower Standard Deviation that means that the rates that we used for the average were closer to 3.03.