Which statistical method can be used to assess the spread of the monthly rent data?

The standard deviation is the most appropriate statistical method for assessing the spread of the monthly rent data. It measures the amount of variability or dispersion in a set of values. In other words, it quantifies how much the monthly rent values deviate from the mean rent. A higher standard deviation indicates that the rents are spread out over a wider range, while a lower standard deviation suggests that the rents are more clustered around the mean.

Unlike the mean, median, or mode, which provide measures of central tendency, standard deviation focuses specifically on variability, making it particularly useful in understanding the distribution characteristics of a dataset. This characteristic allows for a comprehensive analysis of the rent data, especially if you are interested in understanding the variations in rent prices among different properties or locations.

Utilizing the standard deviation provides insights into financial decision-making, such as recognizing the risk associated with investing in properties with high rent variability compared to those with more stable rent prices.