Standard Deviation
Introduction
The concept of standard deviation was first introduced by Karl Pearson in 1893. It is one
of the most important and widely used measures of dispersion, which helps analyze the
spread of data around the mean. Standard deviation indicates how much individual data
points deviate from the mean of the dataset.
Definition
The standard deviation (S.D.) of a given set of observations is defined as the positive
square root of the arithmetic mean of the squares of deviations of the observations from
their arithmetic mean. It is denoted by the Greek letter σ (sigma).
Importance of Standard Deviation
1. It measures the consistency and reliability of data in statistics.
2. A low standard deviation indicates that data points are close to the mean, while a high
standard deviation suggests greater variability.
3. It is widely used in research, finance, business, quality control, and scientific studies.
Formula for Standard Deviation
For a set of n observations \(X_1, X_2, X_3, ..., X_n\), the standard deviation is given by:
σ = √( Σ (X - X̄ )² / n )
where X̄ is the arithmetic mean of the given observations, calculated as:
X̄ = ΣX / n
Standard Deviation for Grouped Data
If \(X_1, X_2, ..., X_n\) are the class marks of a set of grouped data with class
frequencies \(f_1, f_2, ..., f_n\), then the standard deviation is given by:
σ = √( Σ f (X - X̄ )² / N )
where \(N = Σf\) is the total frequency, and \(X̄ = Σ fX / N\) is the arithmetic mean.
Variance
The variance of a given set of observations is defined as the square of the standard
deviation:
σ² = Σ (X - X̄ )² / n or σ² = Σ f (X - X̄ )² / N
Example 1: Finding Variance
Q: Find the variance if Σ d² = 150 and N = 6. Deviations are taken from the actual mean.
Solution:
σ² = Σ d² / N = 150 / 6 = 25
Example 2: Standard Deviation Calculation
Q: Calculate the standard deviation of the following marks obtained by 5 students in a
tutorial group:
Marks obtained: 8, 12, 13, 15, 22
Solution: The arithmetic mean is calculated as X̄ = 14, and the standard deviation is
calculated using the formula:
σ = √( Σ (X - X̄ )² / n ) = 4.6
Different Methods of Calculating Standard Deviation
1. Short-cut Method
σ = √( Σ X² / n - (Σ X / n)² )
2. Assumed Mean Method
σ = √( Σ d² / n - (Σ d / n)² ) where d = X - A
3. Step-Deviation Method
σ = √( Σ u² / n - (Σ u / n)² ) × c where u = (X - A) / c
Effect of Change in Data on Standard Deviation
If all items in a dataset are increased by a constant value, the standard deviation remains
unchanged.
Example 16: What happens to standard deviation if all items are increased by 2?
Q: What will happen to standard deviation if all the items in a dataset are increased by 2?
Give a reason.
Solution:
The standard deviation will not be affected since it is independent of change of origin.
Different Methods of Calculating Standard Deviation for Grouped Data
1. Short-cut Method
σ = √( Σ fX² / N - (Σ fX / N)² )
2. Assumed Mean Method
σ = √( Σ fd² / N - (Σ fd / N)² ) where d = X - A
3. Step-Deviation Method
σ = √( Σ fu² / N - (Σ fu / N)² ) × h where u = (X - A) / h
Example 17: Finding Standard Deviations of X and Y
Q: From the following information, find standard deviations of X and Y:
Σ X = 235, Σ Y = 250, Σ X² = 6750, Σ Y² = 6840, N = 10
Solution: Using the Short-cut Method:
σ_X = √( Σ X² / N - (Σ X / N)² )
σ_Y = √( Σ Y² / N - (Σ Y / N)² )
Final Answer:
Standard Deviation of X: 11.08
Standard Deviation of Y: 7.68
Conclusion
"Standard deviation of a distribution is independent of change of origin but not of scale."
