SUB.

-MATHEMATICS & STATISTICS FOR

MANAGERS
Presented To Presented By:
Prof. Akshay Joshi Prakhar Dubey
Tejus Yadav
The concept of standard deviation was first introduced by
KARL PEARSON in 1893. it is a popular and most
commonly used measure of dispersion. The term
‘standard’ is assign to this measure of variation probably
because it is the most flexible measure in term of variety of
applications.
Practically , the mean deviation has been replaced by the
standard deviation. The technique of calculating mean
deviation is mathematically illogical because signs are
ignore in its calculation. This drawback of mean
deviation has been removed by standard deviation. The
standard deviation is represented by the Greek letter
sigma (δ)
•Properties of Standard Deviation

•Standard Deviation is independent of change of origin that means

the value of standard deviation remains the same if in a series each
of the observation is increased or decreased by a constant quantity.

•For a given set of observations , standard deviation is never less

than mean deviation
i.e. S.D. ≥ M.D..

Standard deviation is the minimum root mean-square deviation.

•It is rigidly defined and based on all observation of the data.

•It is least affected by sampling fluctuations.

•It is possible to calculate the combined standard deviation of two

or more series.

•It is the help of standard deviation , it is possible to ascertain the

area under the normal curve.
•It is not simple to calculate and easy to understood.

•It is also affected by extreme values. It gives undue

importance to the items away from the arithmetic mean ,
and less importance to the items near the mean.

•The chief limitation of standard deviation is that it

cannot be used for comparing the dispersion of two or
more series of observations given in different units.