MODULE 3 (Variance)
MODULE 3 (Variance)
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.
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.
Example 2 The weight of nine basketball players are recorded as follows (in
pounds).
206 215 305 297 265 282 301 255 261
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.
Solution
Step 1 Make a table. Find the midpoints of each class. Multiply the midpoints by
the frequency of each class.
Step 2 Multiply the frequency by the square of the midpoint for each class.
1 2 3 4 5
Step 3 Find the sum of columns 2, 4 and 5. Substitute in the formula for 𝑠 2
1 2 3 4 5
Complied by: