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The Mean Deviation and the Standard Deviation Vartanian: SW 540 n Mean Deviation = ∑ i | xi − x| n The value for the mean deviation gives the average distance from the mean. Example: Income in thousands of dollars. Person 1: 10 Person 2: 15 Person 3: 20 Person 4: 25 Person 5: 30 X = 20 MD = |10 − 20|+ |15 − 20|+ |20 − 20|+ |25 − 20|+ |30 − 20| 30 = =6 5 5 Standard Deviation for a sample: The standard deviation for the population is the same as above except the denominator is simply n, not –1. Thus, the standard deviation is: S=/(10-20)2+(15-20)2+(20-20)2+(25-20)2+(30-20)2/4 S=/(100+25+0+25+100)/4 S=/250/4= S=/62.5 S=7.906 C:\WP60\LECT1.PHD\Mean Values\Mean.Deviation.Standard.Deviation.wpd YELLOW Page 1 A computationally easier method for computing the standard deviation for the population is In the case above, s= s= s= s= s= 1 5(100 + 225 + 400 + 625 + 900) − (100) 2 = 5 1 5 * 2250 − 10000 = 5 1 11250 − 10000 = 5 1 1250 = 5 1 (35.3553) = 7.071067812 5 C:\WP60\LECT1.PHD\Mean Values\Mean.Deviation.Standard.Deviation.wpd YELLOW Page 2 The Mean for Grouped Data Vartanian: SW 540 Example: $ 0-100 101-200 201-300 301-400 Cases 10 50 70 20 Midpoint 50 150 250 350 To determine the mean, use the midpoints and multiply by the number of cases in each category. Then divide by the total number of cases. 10 * 50 + 50 *150 + 70 * 250 + 20 * 350 = 150 500 + 7500 + 17500 + 7000 X= = 150 32500 X= = 216.667 150 X= C:\WP60\LECT1.PHD\Mean Values\Mean.Deviation.Standard.Deviation.wpd YELLOW Page 3