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SecTIoN 1D  Describing Quantitative Data with Numbers   57



                        SOLUTION:

                                       ++++
                             +++
                            1 222 3333 4+++                              1.  Find the mean of the distribution.
                                                           4 6
                        x =                                      = 3
                                             11
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                          Value  Deviation from mean  Squared deviation
                                      x i − x         (x i −  ) x  2
                           x i                                           2.  Calculate the deviation of each value from the
                                                         2
                                                     −
                           1         13−=− 2          ( 2) = 4
                                                                           mean: deviation = value − mean.
                                                         2
                                                     −
                           2        2 3−=− 1         ( 1) = 1
                                                         2
                                                     −
                           2        2 3−=− 1         ( 1) = 1
                                                         2
                                                     −
                           2        2 3−=− 1         ( 1) = 1
                                                         2
                           3       33−=  0             0 =  0            3.  Square each deviation.
                                                         2
                           3       33−=  0              0 = 0
                                                         2
                           3       33−=  0             0 =  0
                                                         2
                           3       33−=  0             0 =  0
                                                         2
                                      31
                           4       4−=                  1 = 1
                                                         2
                                      31
                           4       4−=                   1 = 1
                                                         2
                           6       6 3−= 3              3 = 9
                                                       Sum = 18
                                                                        4.  Add all the squared deviations and divide by  −1.
                                                                                                         n
                              18                                          This gives the sample variance.
                        s 2 =      = 1.80
                         x
                               −
                             11 1
                        s x  =  1.80 = 1.34 closefriends                5.  Take the square root to return to the original units.
                        Interpretation: The number of close friends these students have typically
                        varies from the mean by about 1.34 close friends.
                                                                                             FoR PRAcTIce, TRY eXeRcISe 13
                                                     The notation s  refers to the standard deviation of a sample. When we need to
                                                                  x
                                                   refer to the standard deviation of a population, we’ll use the symbol σ (lowercase
                                                   Greek letter sigma). We often use the sample statistic s  to estimate the popula-
                                                                                                     x
                                                   tion parameter σ. The population standard deviation σ is calculated by dividing
                                                   the sum of squared deviations from the population mean µ by the population size
                                                   N (not  −1N  ) before taking the square root.

                                                     Think About It

                                                     WHY IS THE STANDARD DEVIATION CALCULATED IN SUCH A COMPLEX
                                                     WAY?  Add the deviations from the mean in the preceding example. You
                                                     should get a sum of 0. Why? Because the mean is the balance point of the
                                                     distribution. We square the deviations to avoid the positive and negative devia-
                                                     tions balancing each other out and adding to 0. It might seem strange to “aver-
                                                     age” the squared deviations by dividing by  −1n  . We’ll explain the reason for
                                                     doing this in Unit 5. It’s easier to understand why we take the square root: to
                                                     return to the original units (close friends).





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