Standard deviation, Applied Statistics

Standard Deviation

The main drawback of the deviation measures of dispersion, as discussed earlier, is that the positive and negative deviations cancel out each other. Use of the mean absolute deviation overcomes this problem, but creates another. It is difficult to deal with a quantity like 378_mean absolute deviation1.png  algebraically.The standard deviation is an improved measure of dispersion. Calculation of the standard deviation involves the following four steps:

  1. Calculation of deviations of the observations from the mean.

  2. Squaring each deviation.

  3. Finding the mean of the squared deviations obtained in step (2).

  4. Taking the positive square root of the mean found in step (3).

    The standard deviation is denoted by 'σ'

    so, σ = 649_standard deviation.png

    where,

             X   denotes each observation

             μ          is the arithmetic mean of the population

             N   is the number of observations

Posted Date: 9/14/2012 3:03:48 AM | Location : United States







Related Discussions:- Standard deviation, Assignment Help, Ask Question on Standard deviation, Get Answer, Expert's Help, Standard deviation Discussions

Write discussion on Standard deviation
Your posts are moderated
Related Questions
Cause and Effect Even a highly significant correlation does not necessarily mean that a cause and effect relationship exists between the two variables. Thus, correlation does

PCA is a linear transformation that transforms the data to a new coordinate system such that the greatest variance by any projection of the data comes to lie on the first coordinat

Advantages It is especially useful in case of open-end classes since only the position and not the values of items must be known. The median is also recommended if th

Deviation Measures The drawback of the range as a measure of dispersion is that it takes into account the values of only two data points - the largest and the smallest. One

Example of discrete random variable: 1. What is a discrete random variable? Give three examples from the field of business. 2. Of 1000 items produced in a day at XYZ Manufa

Rank Correlation Sometimes the characteristics whose possible correlation is being investigated, cannot be measured but individuals can only be ranked on the basis of the chara


Estimate the standard deviation of the process: Draw the X (bar) and R charts for the data given and give your comments about the process under study. Estimate the standard de

Multivariate analysis of variance (MANOVA) is a technique to assess group differences across multiple metric dependent variables simultaneously, based on a set of categorical (non-