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Math 2311: Class Notes For Section 1.3

This document discusses key concepts related to the spread or dispersion of data values, including variance, standard deviation, and coefficient of variation. It provides formulas for calculating population variance and standard deviation, as well as sample variance and standard deviation. It also includes examples calculating these measures for given data sets and exploring how they are affected by adding or multiplying all values. The final example compares the coefficient of variation for two stock portfolios to determine which has less variation in prices.

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37 views3 pages

Math 2311: Class Notes For Section 1.3

This document discusses key concepts related to the spread or dispersion of data values, including variance, standard deviation, and coefficient of variation. It provides formulas for calculating population variance and standard deviation, as well as sample variance and standard deviation. It also includes examples calculating these measures for given data sets and exploring how they are affected by adding or multiplying all values. The final example compares the coefficient of variation for two stock portfolios to determine which has less variation in prices.

Uploaded by

CrystalObed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Math 2311

Class Notes for Section 1.3


Another important question we want to answer about data is about its spread or dispersion. Roughl spea!ing"
the population standard deviation" #" tells the a$erage distance that data $alues fall from the mean. %he
standard de$iation is the square root of the population variance" #
2
. So" what is the $ariance& %he $ariance is
the a$erage of the squared differences of the data $alues from the mean.
'f N is the number of $alues in a population with mean

" and

x
i
represents each indi$idual $alue in the
population" then the $ariance is found b(

2
=
)x
i
*
2
i=1
N

N

And the population standard de$iation is

=
2

Most of the time we are not wor!ing with the entire population. 'nstead" we are wor!ing with a sample.
Sample $ariance +

s
2
=
)x
i
x*
2
i=1
n

n1

Sample standard de$iation +

s= s
2

,-ample(
1. A statistics teacher wants to decide whether or not to cur$e an e-am. .rom her class of 3// students" she
chose a sample of 1/ students and their grades were(

02" 11" 12" 11" 3/" 24" 0/" 02" 33" 43
.ind the mean" $ariance and standard de$iation for this sample.
2. Suppose the statistics teacher decides to cur$e the grades b adding 1/ points to each score. 5hat is the
new mean" $ariance and standard de$iation&
5e can see from e-ample 2 that adding the same $alue to all elements does not affect the $ariance )or
standard de$iation* of a set of data. 5hat about multipling&
3. .ind the $ariance and the standard de$iation for the following set of data )whose mean is 4.2*
3" 3" 2" 0" 4" 2
Now" multipl each $alue b 2. 5hat is the new $ariance and the new standard de$iation&
Sometimes we want to compare the $ariation between two groups. %he coefficient of variation can be used
for this. %he coefficient of $ariation is the ratio of the standard de$iation to the mean. A smaller ratio will
indicate less $ariation in the data.
,-ample(
4. %he following statistics were collected on two different groups of stoc! prices(
5hat can be said about the $ariabilit of each portfolio&
6ortfolio A 6ortfolio 7
Sample si8e 1/ 12
Sample mean 922.32 94:.1/
Sample standard de$iation 93.2/ 92.:2

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