ACADEMY / LEVEL 03 / LESSON 14
LESSON 14 / 20 ×

Understanding Deviation

STEP 1 · LEARN

Deviation tells us how far an observed result is above or below what we expected. It's the gap between what should happen, on average, and what actually happened in a given sample.

A small deviation is normal — results always wobble around the expected value. A strategy pays attention to deviation because a large, sustained deviation can signal a condition worth watching, not because any single deviation predicts what happens next.

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STEP 2 · SEE
EXPECTED
10
ACTUAL
7
DEVIATION: −30%
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STEP 3 · UNDERSTAND THE FORMULA
((Actual − Expected) / Expected) × 100
ACTUALWhat was actually observed in the sample.
EXPECTEDWhat the baseline probability predicts.
× 100Converts the ratio into a percentage.
STEP 4 · PRACTICE
A digit was expected to appear 10 times but appeared 12 times. What is the deviation?
A+2%
B+20%
C−20%
D+120%
✓

Concept Mastered ✓

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