What does a high standard deviation indicate in the context of testing significance?

A high standard deviation indicates that the data points are spread out over a wider range of values, which suggests that there are significant deviations from the average. In statistical terms, it implies that there are extreme values or outliers in the dataset that can heavily influence the overall results. As a result, the average becomes less representative of the majority of the data points because those extreme values distort the central tendency.

In the context of market prices, this means that when the standard deviation is high, it reflects a greater level of volatility and uncertainty in prices, making it difficult to rely solely on the average to understand market behavior. Investors and analysts must consider this variability when interpreting results or making predictions.