Measure the spread of data using variance and standard deviation.
While the mean measures center, variance and standard deviation measure spread. Variance is the average squared deviation from the mean; standard deviation is its square root and shares the same units as the data.
Computing Standard Deviation
Mean = 40/8 = 5. Deviationsยฒ: (2โ5)ยฒ=9, (4โ5)ยฒ=1, (4โ5)ยฒ=1, (4โ5)ยฒ=1, (5โ5)ยฒ=0, (5โ5)ยฒ=0, (7โ5)ยฒ=4, (9โ5)ยฒ=16. Variance = 32/8 = 4. ฯ = 2.
Remember This!
Sample standard deviation uses n โ 1 in the denominator (Bessel's correction) instead of n. Use ฯ (population) when you have all data; use s (sample) when estimating from a sample.
A dataset has values {10, 20, 30}. What is the mean and population standard deviation?