Overview
• Objectives
• Definition of Standard Deviation
• Merits and demerits of Standard Deviation
• The calculation of Standard deviation
Objectives
At the end of this presentation you should be able
to :
- Define the standards deviation
- List the merit and demerit of obtaining
standards deviation
- Calculate the variance and standard deviation
Standard Deviation
- Standard deviation measures the dispersion of data.
- It shows the average absolute distance of each point from
the mean
- The greater the value of standard deviation, the further the
data tend to be dispersed from the mean.
Merits of Standard Deviation
1- It is the most reliable measure of dispersion
2- It is most widely used measure of dispersion or
variability
3- Its computation is based on all the observations.
Demerits of Standard Deviation
1- It is relatively difficult to calculate and understand.
2- It cannot be used for comparing the dispersion of two, or more
series given in different units.
3- It is affected very much by the extreme values
Formula
Standard deviation has a symbol (σ) if the data represent a population and (s) if
the data represent a sample
σ =
(𝒙− 𝒙 ) 𝟐
𝒏
s =
(𝒙− 𝒙 ) 𝟐
𝒏−𝟏
Population
Sample
Summary
- Standard deviation measure the dispersion of data.
- It is the most reliable
- The greater the value of standard deviation, the further the
data tend to be dispersed from the mean.