Rescaled range

Hey kiddo, let me explain what rescaled range means.

Have you ever heard of the term "range"? It means the difference between the maximum and minimum values of a set of numbers.

Now, let me give you an example. Imagine we have a set of numbers: 10, 5, 15, 8, 12, and we want to find the range.

The maximum value in this set is 15 and the minimum value is 5, so the range is 15 - 5 = 10.

But sometimes, we may want to compare the range of different sets of numbers that have different scales. That's where "rescaled range" comes into play.

Rescaled range is a way to account for the scale of the numbers in the range calculation. It involves dividing the range by the "standard deviation" of the set of numbers.

Standard deviation is a measure of how spread out the numbers are in a set. It tells us how much the numbers vary from the average (or mean) value.

To calculate the standard deviation, we first find the mean (average) value of the set of numbers. Then, for each number, we subtract the mean and square the result. We add up all these squared differences and divide by the total number of numbers. Lastly, we take the square root of this result to get the standard deviation.

So, to calculate the rescaled range, we divide the range by the standard deviation. This gives us a measure of how much the range varies relative to the average value of the set.

I hope that helps, kiddo! Let me know if you have any more questions.