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Basics of Statistics

Variance is a statistical measure that quantifies how much a set of numbers deviates from their mean, represented by the formula Var(X) = E[(X-μ)²]. A higher variance indicates greater spread among data points, while a lower variance signifies they are closer to the mean. The document also explains the concept of mean deviation, which measures the average deviation from the mean, with formulas and examples for both variance and mean deviation.

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46 views7 pages

Basics of Statistics

Variance is a statistical measure that quantifies how much a set of numbers deviates from their mean, represented by the formula Var(X) = E[(X-μ)²]. A higher variance indicates greater spread among data points, while a lower variance signifies they are closer to the mean. The document also explains the concept of mean deviation, which measures the average deviation from the mean, with formulas and examples for both variance and mean deviation.

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Variance is the expected value of the squared variation of a random

variable from its mean value, in probability and statistics. Informally,


variance estimates how far a set of numbers (random) are spread out
from their mean value.
The value of variance is equal to the square of standard deviation,
which is another central tool.
Variance is symbolically represented by σ2, s2, or Var(X).
The formula for variance is given by:
Var (X) = E[(X-μ)2]

Definition
Variance is a measure of how data points differ from the mean.
According to Layman, a variance is a measure of how far a set of data
(numbers) are spread out from their mean (average) value.
Variance means to find the expected difference of deviation from
actual value. Therefore, variance depends on the standard deviation of
the given data set.
The more the value of variance, the data is more scattered from its
mean and if the value of variance is low or minimum, then it is less
scattered from mean. Therefore, it is called a measure of spread of
data from mean.

Example of Variance
Let’s say the heights (in mm) are 610, 450, 160, 420, 310.
Mean and Variance is interrelated. The first step is finding the mean
which is done as follows,
Mean = ( 610+450+160+420+310)/ 5 = 390
So the mean average is 390 mm.
To calculate the Variance, compute the difference of each from the
mean, square it and find then find the average once again.
So for this particular case the variance is : {610-390=220 and so on}
= (2202 + 602 + (-230)2 +302 + (-80)2)/5
= (48400 + 3600 + 52900 + 900 + 6400)/5
Final answer : Variance = 22440
Example: Find the variance of the numbers 3, 8, 6, 10, 12, 9, 11,
10, 12, 7.
Solution:
Given,
3, 8, 6, 10, 12, 9, 11, 10, 12, 7
Step 1: Compute the mean of the 10 values given.
Mean = (3+8+6+10+12+9+11+10+12+7) / 10 = 88 / 10 = 8.8
Step 2: Make a table with three columns, one for the X values, the
second for the deviations and the third for squared deviations. As the
data is not given as sample data so we use the formula for population
variance. Thus, the mean is denoted by μ.

Value
X–μ (X – μ)2
X
3 -5.8 33.64
8 -0.8 0.64
6 -2.8 7.84
10 1.2 1.44
12 3.2 10.24
9 0.2 0.04
11 2.2 4.84
10 1.2 1.44
12 3.2 10.24
7 -1.8 3.24
Total 0 73.6

Step 3:
σ 2=∑( X- μ )2 / N

= 73.6 / 10
= 7.36

Mean Deviation Definition


The mean deviation is defined as a statistical measure that is
used to calculate the average deviation from the mean value of
the given data set. The mean deviation of the data values can
be easily calculated using the below procedure.
Step 1: Find the mean value for the given data values
Step 2: Now, subtract the mean value from each of the data
values given (Note: Ignore the minus symbol)
Step 3: Now, find the mean of those values obtained in step 2.

Mean Deviation Formula


The formula to calculate the mean deviation for the given data set is
given below.
Mean Deviation = [Σ |X – µ|]/N
Here,
Σ represents the addition of values
X represents each value in the data set
µ represents the mean of the data set
N represents the number of data values
Mean Deviation for Discrete Distribution Frequency
As the name itself suggests, by discrete we mean distinct or non-
continuous. In such a distribution the frequency (number of
observations) given in the set of data is discrete in nature.
If the data set consists of values x 1,x2, x3………xn each occurring with
a frequency of f1, f2… fn respectively then such a representation of
data is known as the discrete distribution of frequency.
To calculate the mean deviation for grouped data and particularly for
discrete distribution data the following steps are followed:
Step I: The measure of central tendency about which mean deviation
is to be found out is calculated. Let this measure be a.
If this measure is mean then it is calculated as,

where
n

N=∑ ( fi )
i=1

If the measure is median then the given set of data is arranged in


ascending order and then the cumulative frequency is calculated then
the observations whose cumulative frequency is equal to or
just greater than N/2 is taken as the median for the given discrete
distribution of frequency and it is seen that this value lies in the
middle of the frequency distribution.
Step II: Calculate the absolute deviation of each observation from the
measure of central tendency calculated in step (I)
StepIII: The mean absolute deviation around the measure of central
tendency is then calculated by using the formula
If the central tendency is mean then,

In case of median

Mean Deviation Examples


Example 1:
Determine the mean deviation for the data values 5, 3,7, 8, 4, 9.
Solution:
Given data values are 5, 3, 7, 8, 4, 9.
We know that the procedure to calculate the mean deviation.
First, find the mean for the given data:
Mean, µ = ( 5+3+7+8+4+9)/6
µ = 36/6
µ=6
Therefore, the mean value is 6.
Now, subtract each mean from the data value, and ignore the minus
symbol if any(Ignore”-”)
5–6=1
3–6=3
7–6=1
8–6=2
4–6=2
9–6=3
Now, the obtained data set is 1, 3, 1, 2, 2, 3.
Finally, find the mean value for the obtained data set
Therefore, the mean deviation is
= (1+3 + 1+ 2+ 2+3) /6
= 12/6
=2
Hence, the mean deviation for 5, 3,7, 8, 4, 9 is 2.
Example 2:
In a foreign language class, there are 4 languages, and the frequencies
of students learning the language and the frequency of lectures per
week are given as:

Language Sanskrit Spanish French English

No. of
6 5 9 12
students(xi)

Frequency
of 5 7 4 9
lectures(fi)

Calculate the mean deviation about the mean for the given data.
Solution: The following table gives us a tabular representation of data
and the calculations

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