Understanding Standard Deviation and Its Calculation

Aug 23, 2024

Lecture on Standard Deviation

Overview

  • Importance of standard deviation in data collection.
  • Understanding standard deviation conceptually and calculating it by hand and using a spreadsheet.

Understanding Standard Deviation

  • Related to the normal distribution (bell-shaped curve).
  • Measures the spread or variation of data.
  • Key Concept:
    • In a normal distribution:
      • 68% of data falls within one standard deviation from the mean.
      • 95% falls within two standard deviations.
      • 99% falls within three standard deviations.

Calculation of Standard Deviation

  • Example Calculation:
    • Data set: 1, 2, 3, 4, 5
    • Steps:
      1. Calculate the mean (average):
        • Add all data points (1+2+3+4+5 = 15).
        • Divide by number of data points (5): Mean = 3.
      2. Calculate deviation for each data point:
        • (X - Mean)^2 for each data point.
        • Examples:
          • (1 - 3)^2 = 4
          • (2 - 3)^2 = 1
          • (3 - 3)^2 = 0
          • (4 - 3)^2 = 1
          • (5 - 3)^2 = 4
      3. Sum of squared deviations: 4 + 1 + 0 + 1 + 4 = 10.
      4. Divide by degrees of freedom (n-1): 10 / 4 = 2.5.
      5. Take the square root: √2.5 = 1.58.

Using Spreadsheets

  • Example Data Set: 0, 2, 4, 5, 7
  • Steps:
    • Enter data into spreadsheet cells.
    • Use functions to calculate:
      • Mean: =AVERAGE(range)
      • Standard Deviation: =STDEV(range)
    • Example result for standard deviation: 2.7, indicating a higher spread in data.

Conclusion

  • Standard deviation is a crucial statistical tool for understanding data spread.
  • Calculating by hand helps with understanding, while spreadsheets offer efficiency.
  • Practice calculating both manually and with technological tools to strengthen understanding.