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Standard Deviation and Variance

Standard deviation is a measure of how spread out numbers are from the mean or average value. It is calculated as the square root of the variance. Variance is the average of the squared differences between each value and the mean. When calculating variance for a sample (subset of a larger population), the values are divided by N-1 rather than N to adjust for bias introduced by using a sample rather than the entire population. Standard deviation provides a standard unit to determine whether values fall within a normal range around the mean.

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496 views

Standard Deviation and Variance

Standard deviation is a measure of how spread out numbers are from the mean or average value. It is calculated as the square root of the variance. Variance is the average of the squared differences between each value and the mean. When calculating variance for a sample (subset of a larger population), the values are divided by N-1 rather than N to adjust for bias introduced by using a sample rather than the entire population. Standard deviation provides a standard unit to determine whether values fall within a normal range around the mean.

Uploaded by

stiker4
Copyright
© © All Rights Reserved
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Download as DOC, PDF, TXT or read online on Scribd
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Standard Deviation and Variance

Deviation just means how far from the normal

Standard Deviation
The Standard Deviation is a measure of how spread out numbers are.
Its symbol is (the greek letter sigma)
The formula is easy: it is the square root of the Variance. So now you ask, "What is
the Variance?"

Variance
The Variance is defined as:
The average of the squared differences from the Mean.
To calculate the variance follow these steps:

Work out the Mean (the simple average of the numbers)


Then for each number: subtract the Mean and square the result (the squared
difference).
Then work out the average of those squared differences. (Why Square?)

Example
You and your friends have just measured the heights of your dogs (in millimetres):

The heights (at the shoulders) are: 600mm, 470mm, 170mm, 430mm and 300mm.
Find out the Mean, the Variance, and the Standard Deviation.
Your first step is to find the Mean:

Answer:
Mean =

600 + 470 + 170 + 430 + 300


1970
=
= 394
5
5

so the mean (average) height is 394 mm. Let's plot this on the chart:

Now we calculate each dog's difference from the Mean:

To calculate the Variance, take each difference, square it, and then average the result:

So, the Variance is 21.704.


And the Standard Deviation is just the square root of Variance, so:
Standard Deviation: = 21.704 = 147,32... = 147 (to the nearest mm)

And the good thing about the Standard Deviation is that it is useful. Now we can
show which heights are within one Standard Deviation (147mm) of the Mean:

So, using the Standard Deviation we have a "standard" way of knowing what is
normal, and what is extra large or extra small.
Rottweilers are tall dogs. And Dachshunds are a bit short ... but don't tell them!
Now try the Standard Deviation Calculator.

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


Our example was for a Population (the 5 dogs were the only dogs we were interested
in).
But if the data is a Sample (a selection taken from a bigger Population), then the
calculation changes!
When you have "N" data values that are:

The Population: divide by N when calculating Variance (like we did)


A Sample: divide by N-1 when calculating Variance

All other calculations stay the same, including how we calculated the mean.
Example: if our 5 dogs were just a sample of a bigger population of dogs, we would
divide by 4 instead of 5 like this:
Sample Variance = 108.520 / 4 = 27.130
Sample Standard Deviation = 27.130 = 164 (to the nearest mm)
Think of it as a "correction" when your data is only a sample.

Formulas
Here are the two formulas, explained at Standard Deviation Formulas if you want to
know more:

The "Population Standard Deviation":


The "Sample Standard Deviation":

Looks complicated, but the important change is to


divide by N-1 (instead of N) when calculating a Sample Variance.

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