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MODULE 3 (Variance)

This document discusses measures of variation in data sets. It introduces the concepts of range, variance, and standard deviation as measures of how dispersed or spread out the values are in a data set compared to the average. Range is the difference between the highest and lowest values but is influenced by outliers. Variance and standard deviation indicate how closely the values are clustered around the mean, with lower values meaning less variation. Standard deviation is the positive square root of variance and is commonly used. Formulas to calculate variance and standard deviation from raw data and grouped data are presented along with examples.

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Keaven Rold Formilos
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292 views5 pages

MODULE 3 (Variance)

This document discusses measures of variation in data sets. It introduces the concepts of range, variance, and standard deviation as measures of how dispersed or spread out the values are in a data set compared to the average. Range is the difference between the highest and lowest values but is influenced by outliers. Variance and standard deviation indicate how closely the values are clustered around the mean, with lower values meaning less variation. Standard deviation is the positive square root of variance and is commonly used. Formulas to calculate variance and standard deviation from raw data and grouped data are presented along with examples.

Uploaded by

Keaven Rold Formilos
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MODULE 3: MEASURES OF VARIATION

3.1 Measures of Variation


The previous section focused on averages or measures of central tendency. The
averages are supposed to be central scores of a given set of data. However, not all
features of a given data set may be reflected by the averages. For example, two
different groups of 5 students are given identical quizzes in Math. The following data
at the right were the results.
GROUP 1 GROUP 2
14 5
13 19
18 18
14 14
11 14

The average of each group are as follows.

GROUP 1 GROUP 2
Mean 14 14
Median 14 14
Mode 14 14
Midrange 14.5 12

These two sets of averages have no difference. But intuitively, both groups show an obvious

difference. Group 2 has a more widely scattered data than Group 1. This characteristic
called variability is not reflected by averages. The three basic measures of variation are
range, variance, and standard deviation.

RANGE

The range is the simplest measure of variation to calculate. It is just the difference between

the largest and the smallest value in a given data set. For group 1, the range is 18 -11 = 7.

The range for group 2 is 19 - 5 = 14. A much larger range suggests greater variation or
dispersion. The range has a disadvantage of being influenced by extreme values called
outliers. Another is that it is based on two values only. All the other values in the set are
being ignored.

STANDARD DEVIATION AND VARIANCE

The standard deviation is the most commonly used measure of variation. The standard

deviation indicates how closely the values of a given data set are clustered around the
mean. A lower value of the standard deviation means that the values of that given data
set are spread over a smaller range around the mean. On the other hand, a large value of
the standard deviation means that values of that data set are spread over a larger range
around the mean.

The standard deviation is the positive square root of the variance. The variance calculated

from a population data is denoted by σ2 (sigma squared) and the standard deviation by
σ. The basic

formulas are
Example 1 The final exam scores of 5 students were 80, 88, 92, 90, and 85. Determine
the variance and standard deviation.
Solution:

UNBIASED ESTIMATOR
When computing the variance for a sample, one might use the formula

where is the sample mean and n is the sample size. This formula produces what
is called a biased estimate of the population variance. This estimate is different from
the expected value of a population parameter. When the population is very large
and the sample is small, the computed variance would underestimate the
population variance. Instead, divide by n - 1 to yield a slightly larger value and an
unbiased estimate of the population variance.

The unbiased estimator of the population variance is a statistic whose value


approximates the expected value of a population variance.
The following formulas are shortcut formulas for computing the variance and
standard deviation. These are mathematically equivalent to the preceding
formulas. They save time when repeated subtracting and squaring occur in original
formulas.

Example 2 The weight of nine basketball players are recorded as follows (in
pounds).
206 215 305 297 265 282 301 255 261

Find the variance and standard variation

3.2 Variance and Standard Variation for Grouped Data

The procedure is similar to that of finding the mean for grouped data, and it uses
the midpoints of each class.
Example 3 For 108 randomly selected high school students, the following IQ
frequency distribution were obtained.

Class Limits Frequency


90-98 6
99-107 22
108-116 43
117-125 28
126-134 9

Solution
Step 1 Make a table. Find the midpoints of each class. Multiply the midpoints by
the frequency of each class.

Class Limits Frequency 𝒙𝒎 𝒇. 𝒙𝒎


90-98 6 94 564
99-107 22 103 2266
108-116 43 112 4816
117-125 28 121 3388
126-134 9 130 1170

Step 2 Multiply the frequency by the square of the midpoint for each class.

1 2 3 4 5

Class Limits Frequency 𝒙𝒎 𝒇. 𝒙𝒎 (𝒇. 𝒙𝒎 )𝟐


90-98 6 94 564 53016
99-107 22 103 2266 233398
108-116 43 112 4816 539392
117-125 28 121 3388 409948
126-134 9 130 1170 152100

Step 3 Find the sum of columns 2, 4 and 5. Substitute in the formula for 𝑠 2
1 2 3 4 5

Class Limits Frequency 𝒙𝒎 𝒇. 𝒙𝒎 (𝒇. 𝒙𝒎 )𝟐


90-98 6 94 564 53016
99-107 22 103 2266 233398
108-116 43 112 4816 539392
117-125 28 121 3388 409948
126-134 9 130 1170 152100
2
Sum n=108 𝛴𝑓. 𝑥𝑚 =12204 𝛴𝑓. 𝑥𝑚 =1387854
Let us take a Drill (Assignment)

Class Frequency 𝒙𝒎 𝒇. 𝒙𝒎 (𝒇. 𝒙𝒎 )𝟐


Boundaries
16.5-18.5 5
18.5-20.5 40
20.5-22.5 70
22.5-24.5 47
24.5-26.5 6
26.5-28.5 2
28.5-30.5 2

Variance=________________ standard deviation=_________________

Complied by:

Engr. Joselito Flaviano Jr.


Part-time lecturer

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