MAT 152

MATHEMATICS IN THE MODERN WORLD

LESSON 11: VARIANCE AND STANDARD DEVIATION

VARIANCE:
It is the average of the squared differences from the mean.

FORMULA :

SAMPLE VARIANCE POPULATION VARIANCE

 x  x   x  x 
2 2
2 2
s  s 
n 1 n

Where : s2= variance

x =value of one observation
x = mean of all observations
n= number of observations

*Observation - is the value in the data set.

How to calculate the variance:

1. Find the mean

2. Subtract the mean from each number in the data set and then square the result.
2  x  x 2
3. Use the formula s  in solving the population variance while in
n
 x  x 2
2
sample variance use s  .
n 1

STANDARD DEVIATION
It is the square root of the variance.

Formulas:

Sample Population

 (x  x 2
)  (x  x 2
)
s
n 1
s
n s  s2
EXAMPLE :

USING SAMPLE VARIANCE

Solve the range, mean , variance and standard variation of the following data set.

45 60 78 89 90

Solve for the:

45  60  78  89  90
Mean : x = = 72.40
5

Range: 90 - 45 = 45

VARIANCE:

x (x - x ) (x - x )2

45 45 - 72.40 = -27.40 (-27.40)2 = 750.76

n=5 60 60 - 72.40 = -12.40 (-12.40)2 = 153.76
78 78 - 72.40 = 5.60 (5.60)2 = 31.36
There are 5
observations 89 89 - 72.40 = 16.60 (16.60)2 = 275.56
90 90 - 72.40 = 17.60 (17.60)2
= 309.76
x = 72.40  (x  x) = 1 521.2

 x  x 
2

Use the formula: s 2


n 1
, where  (x  x) = 1 521.2 and n =5

 x  x 
2

Sample Variance (s2) =

n 1

1521.2
=
5 1

1521.2
=
4

= 380.30
ALTERNATE SOLUTION: You can directly type this on the calculator.

S2 = x 2


n
( x )2 (45 2  60 2  78 2  89 2  90 2 )
--
5
(72.40)2
n 1 n 1 5 1 5 1

(45 2  60 2  78 2  89 2  90 2 ) 5
=
-- (72.40)2
5 1 5 1

= ( 2025  3600  6084  7921  8100) 5

- (5241.76)
4 4

27730 32761
= --
4 5

= 6932.5 -- 65522

380.30
=

U can download hiPER SCIENTIFIC

CALCULATOR on your phone.

Standard Deviation

Use the formula s  s2

Where s2 = 380.30

Solution :

Standard Deviation (sd ) = 380 . 30

= 19.5012 (round this in 2 decimal places)

= 19.50
USING POPULATION VARIANCE

Variance : x (x - x ) (x - x )

45 45 - 72.40 = -27.40 (-27.40)2 = 750.76

60 60 - 72.40 = -12.40 (-12.40)2 = 153.76
78 78 - 72.40 = 5.60 (5.60)2 = 31.36
89 89 - 72.40 = 16.60 (16.60)2 = 275.56
90 90 - 72.40 = 17.60 (17.60)2 = 309.76
x = 72.40  (x  x) = 1 521.2

So we know the value of

 ( x  x ) = 1 521.2 add n = 5, lets solve the variance using this formula
 x  x 
2
1521.2 304.24
S =
2
= =
n 5

ALTERNATE SOLUTION: You can directly type this on the calculator.

(45 2  60 2  78 2  89 2  90 2 )
-- (72.40)2
5
(45 2  60 2  78 2  89 2  90 2 )
S2 =
-- (72.40)2
5

= ( 2025  3600  6084  7921  8100)

- 5241.76
5

27730
= -- 5241.76
5

= 5546 - 5241.76

= 304.24

U can download hiPER SCIENTIFIC

CALCULATOR on your phone.
Standard deviation :

Use the formula s  s2

Where s2 = 304.24

Solution :

Standard Deviation (sd ) = 304 . 24

= 17.44247 (round this in 2 decimal places)

= 17.44

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