A statistical tool provides the average value and the measure of data dispersion within a dataset. It determines the central tendency and variability, offering a comprehensive overview of data distribution. For instance, when analyzing test scores, it provides the class average and indicates how widely the scores are spread around that average.
This type of tool is important because it simplifies the analysis of data. Understanding the central tendency and data spread allows for informed decision-making in various fields, from finance to scientific research. Historically, manual calculation was tedious and prone to errors, but automated tools have significantly improved accuracy and efficiency.