Understanding Standard Deviation
What is Standard
Deviation?
● Standard deviation measures how spread
out numbers are in a data set.
● It indicates how far each number is from
the mean (average).
● A higher standard deviation means
numbers are more spread out.
Types of Standard Deviation
● There are two main types of standard deviation:
● Population Standard Deviation (σ)
● Sample Standard Deviation (s)
Population Standard Deviation Formula
● The formula is:
● σ = √(Σ(xᵢ - μ)² / N)
● Where:
● Σ = sum of
● xᵢ = each data point
● μ = population mean
● N = total number of data points
Sample Standard
Deviation Formula
● The formula is:
● s = √(Σ(xᵢ - x̄ )² / (n - 1))
● Where:
● x̄ = sample mean
● n = number of sample data points
Calculating the Mean
● To find the mean:
● Add all numbers together.
● Divide by the total count of numbers.
● Example: For 3, 5, and 7:
● Mean = (3 + 5 + 7) / 3 = 5
Example: Standard Deviation Calculation
● Let's calculate the standard deviation for the set: 3, 5, 7.
● Mean = 5.
● Calculate each difference from the mean, square it, and sum
them up.
Calculating Differences
● Differences:
● (3 - 5)² = 4
● (5 - 5)² = 0
● (7 - 5)² = 4
● Sum of squared differences = 4 + 0 + 4 = 8
Final Calculation for
Standard Deviation
● Using the formula:
● σ = √(8 / 3) ≈ 1.63
● This is the standard deviation for the set 3,
5, 7.
Comparing Two Sets of Numbers
● Compare sets: 4, 5, 6 and 3, 5, 7.
● Which set has a greater standard deviation?
● Remember: More spread out = higher standard deviation.
Variance Explained
● Variance is the square of the standard
deviation.
● Formula: Variance = σ²
● Example: If σ ≈ 1.63, then Variance ≈ 2.66.
Why is Standard Deviation Important?
● Helps understand data variability.
● Useful in fields like finance, science, and social studies.
● Aids in making informed decisions based on data analysis.
Engaging Questions
● What do you think happens to standard
deviation if all numbers are the same?
● How can standard deviation help in real-life
situations?
● Can you think of examples where you
might use standard deviation?
Conclusion
● You learned about standard deviation and variance.
● You can calculate both for different data sets.
● Understanding these concepts is crucial for data analysis.
