Understanding Standard Deviation in Data Analysis

In the field of psychological research, understanding how data is analyzed is essential. One commonly used statistical measure is the 'standard deviation.' This measure provides insight into the variability or dispersion of a data set. When researchers report a standard deviation, they are indicating how much individual data points in a set differ from the mean of that set. A smaller standard deviation suggests that the data points tend to be close to the mean, whereas a larger standard deviation indicates that they are spread out over a wider range of values.

Given this context, which of the following statements accurately describes the role of standard deviation in data analysis?