sigmaindex

Sigma Index, also known as the Sigma Index of Dispersion, is a statistical measure used to assess the variability of a dataset. It is particularly useful when comparing the dispersion of different datasets, as it is scale-independent. The Sigma Index is calculated by dividing the standard deviation of the dataset by the mean of the dataset, and then multiplying by 100 to express it as a percentage. This formula is expressed as:

Sigma Index = (Standard Deviation / Mean) * 100

A lower Sigma Index indicates less variability or dispersion in the dataset, while a higher Sigma Index indicates more variability. This measure is widely used in fields such as finance, economics, and quality control to evaluate the consistency and reliability of data. For example, in finance, the Sigma Index can be used to compare the risk of different investment portfolios. In quality control, it can be used to monitor the consistency of a manufacturing process. The Sigma Index is a valuable tool for data analysis and decision-making, providing insights into the stability and predictability of datasets.