Standard deviation - statistical aspects of variability, Operation Management

Standard Deviation - Statistical Aspects of Variability

Although the range gives an indication of variability, its value is solely determined by two measurements, the largest and the smallest. A better indication of variability, which takes into account all of the measurements, is the standard deviation. 

At first sight the following expression might seem to be appropriate. 

f1(x1- µ) +f2(x2- µ) +f3(x3- µ) +... / N

Since we're looking for a measure of dispersion about the mean, then the simple one shown above seems to fit the bill, since, by multiplying the class frequency by the 'distance' of the mid-class value from the mean, and dividing by the number of measurements, it finds the average dispersion of the measurements. 

However, because µis the arithmetical mean, some of the difference values will be positive and the others will be negative. When they are added algebraically the result will be close to zero, giving no indication of the variability. 

This problem can be overcome by squaring the difference terms, the resulting value being termed the variance. The most commonly used statistical measure of variability, the standard deviation (σ, sigma), is calculated as the square root of the variance.

2149_Standard Deviation - Statistical Aspects of Variability.png

Posted Date: 3/15/2013 5:33:29 AM | Location : United States







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

Write discussion on Standard deviation - statistical aspects of variability
Your posts are moderated
Related Questions
What is the difference between direct effects and indirect effects of Goals on choice of strategy?

Clearly-defined goals are the essence of great teamwork. Which of the following statements is most true about how goals should be articulated by teams: a. Goals should not be clear

Imagine you are considering opening a specialty pet store in your area. Create a list of the five most significant risks that you must address prior to making your decision regardi

When a value of a variable(like the possible number of people who might be interested in your product) is said to have a normal distribution, how do the highest and lowest possible

Provide two examples of current leaders and describe how they demonstrate their leadership characteristics. What separates these characteristics from management techniques? How eff

Theory of Constraints in a Company The XYZ Group is one of the largest landscaping companies in the United States. Sixty per cent of the business is landscape maintenance; the

explain the evolution of operations management, highlighting the key stages of developments taken place in the operations management practices in modern day organizations.

1. Since the creation of DHS, the Postal Service is no longer in the business of fighting computer-generated crimes such as child pornography. True or False 2. During the first era

Which of the following is true? MPC can run independent of the operation plan. Business failure can result from poor MPC performance. In PAC, order release directly affect

TRUE or FALSE. The Sergio Lumber Company manufacturers plywood. One step in the process is the one where the veneer is dried by passing through a huge dryer (similar to an oven) wh