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Standard Deviation Formula 1. Compute the mean for the data set. 2. Compute the deviation by subtracting the mean from each value. 3.Square each individual deviation. 4. Add up the squared deviations. 5. Divide by one less than the sample size. 6. Take the square root. Definition • a statistic that tells you how tightly all the various examples are clustered around the mean in a set of data. • The “average of the averages” What the Graph Means Red: 1 Standard Deviation 68% of the data 34% +34% Red and Green: 95% of the data Red, Green, Blue: over 98% 68% of data is grouped near the mean 68% of data points are further from mean What Does It All Mean? • large standard deviation indicates that the data points are far from the mean • small standard deviation indicates that they are clustered closely around the mean. • Used to determine if the calculated mean is a valid representation of the data Sample Data Data Points: 73, 58, 67, 93, 33, 18, 147 Mean: 69.9 (73-69.9)2 = (3.1)2 = 9.61 (58-(69.9)2 = (-11.9)2 = 141.61 (67-69.9)2 = (-2.9)2 = 8.41 (93-69.9)2 = (23.1)2 = 533.61 (33-69.9)2 = (-36.9)2 = 1361.61 (18-69.9)2 = (-51.9)2 = 2693.61 (147-69.9)2 = (77.1)2 = 5944.41 Sum: 10,692.87. Divide by 6 to get 1782.15. Take the square root of this value to get the standard deviation, 42.2.