What does standard deviation (SD) indicate about a dataset?

Standard deviation (SD) provides valuable insight into the distribution of data points in a dataset. Specifically, it quantifies the average distance of each data point from the mean. By indicating how much variability exists within a set of values, SD helps in understanding the spread or dispersion. A low standard deviation signifies that the data points are close to the mean, suggesting less variability, while a high standard deviation indicates that the data points are spread out over a wider range of values.

This measure is crucial for researchers and analysts as it allows them to grasp the consistency of the dataset, making it easier to interpret statistical findings and make informed decisions based on the data. Thus, option B correctly identifies the role of standard deviation in describing the average distance of scores from the mean.