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StandardDeviationandVariance

StandardDeviationandVariance
Deviationjustmeanshowfarfromthenormal

Standard Deviation
TheStandardDeviationisameasureofhowspreadoutnumbersare.
Itssymbolis(thegreeklettersigma)
Theformulaiseasy:itisthesquarerootoftheVariance.Sonowyouask,"Whatis
theVariance?"

Variance
TheVarianceisdefinedas:

TheaverageofthesquareddifferencesfromtheMean.

Tocalculatethevariancefollowthesesteps:

WorkouttheMean(thesimpleaverageofthenumbers)
Thenforeachnumber:subtracttheMeanandsquaretheresult(the
squareddifference).
Thenworkouttheaverageofthosesquareddifferences.(Why
Square?)

Example
Youandyourfriendshavejustmeasuredtheheightsofyourdogs(inmillimeters):

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StandardDeviationandVariance

Theheights(attheshoulders)are:600mm,470mm,170mm,430mmand300mm.
FindouttheMean,theVariance,andtheStandardDeviation.
YourfirststepistofindtheMean:

Answer:
Mean=

600+470+170+430+300
5

1970
5

=394

sothemean(average)heightis394mm.Let'splotthisonthechart:

Nowwecalculateeachdog'sdifferencefromtheMean:

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StandardDeviationandVariance

TocalculatetheVariance,takeeachdifference,squareit,andthenaveragetheresult:

So,theVarianceis21,704.
AndtheStandardDeviationisjustthesquarerootofVariance,so:

StandardDeviation:=21,704=147.32...=147(tothenearestmm)

AndthegoodthingabouttheStandardDeviationisthatitisuseful.Nowwecanshow
whichheightsarewithinoneStandardDeviation(147mm)oftheMean:

So,usingtheStandardDeviationwehavea"standard"wayofknowingwhatisnormal,
andwhatisextralargeorextrasmall.
Rottweilersaretalldogs.AndDachshundsareabitshort...butdon'ttellthem!

Nowtrythe StandardDeviationCalculator .

But ... there is a small change with Sample Data

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StandardDeviationandVariance

OurexamplewasforaPopulation(the5dogsweretheonlydogswewereinterested
in).
ButifthedataisaSample(aselectiontakenfromabiggerPopulation),thenthe
calculationchanges!

Whenyouhave"N"datavaluesthatare:
ThePopulation:dividebyNwhencalculatingVariance(likewedid)
ASample:dividebyN1whencalculatingVariance
Allothercalculationsstaythesame,includinghowwecalculatedthemean.

Example:ifour5dogswerejustasampleofabiggerpopulationofdogs,we
woulddivideby4insteadof5likethis:

SampleVariance=108,520/ 4 =27,130
SampleStandardDeviation=27,130=164(to
thenearestmm)
Thinkofitasa"correction"whenyourdataisonlyasample.

Formulas
Herearethetwoformulas,explainedat StandardDeviationFormulas ifyouwantto
knowmore:

The"PopulationStandardDeviation":

The"SampleStandardDeviation":

Lookscomplicated,buttheimportantchangeisto
dividebyN1(insteadofN)whencalculatingaSampleVariance.
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StandardDeviationandVariance

*Footnote:Whysquarethedifferences?
Ifwejustaddedupthedifferencesfromthemean...thenegativeswould
cancelthepositives:

4+444
4

= 0

Sothatwon'twork.Howaboutweuse absolutevalues ?

|4|+|4|+|4|+|4|
4

4+4+4+4
4

= 4

Thatlooksgood(andisthe MeanDeviation ),butwhataboutthiscase:

|7|+|1|+|6|+|2|
4

7+1+6+2
4

= 4

OhNo!Italsogivesavalueof4,Eventhoughthedifferencesaremore
spreadout!
Soletustrysquaringeachdifference(andtakingthesquarerootatthe
end):

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4 2+4 2+4 2+4 2

4

64
4

= 4

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StandardDeviationandVariance

72+12+62+22 = 90 = 4.74...
4

Thatisnice!TheStandardDeviationisbiggerwhenthedifferencesare
morespreadout...justwhatwewant!
Infactthismethodisasimilarideato distancebetweenpoints ,just
appliedinadifferentway.
Anditiseasiertousealgebraonsquaresandsquarerootsthanabsolute
values,whichmakesthestandarddeviationeasytouseinotherareasof
mathematics.
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