How to Calculate Standard Deviation in Statistics
Standard deviation (SD) is a crucial concept in statistics, as it provides an understanding of the dispersion or variability of data. In simpler terms, it helps us to gauge how ‘spread out’ the data points are from their mean value. Calculating SD might seem intimidating at first; however, with this step-by-step guide, you will master the art of determining SD in no time.
Calculating Standard Deviation: Step-by-Step
Before diving into the steps, let’s get familiar with the primary symbols used in SD calculation:
– N: The total number of data points
– Σ: The summation symbol
– xi: Each individual data point
– μ: The mean (average) of all data points
With these symbols in mind, follow the steps below to compute SD:
1. Find the mean (μ) of the dataset:
To determine the mean, sum up all the data points and divide by the total number of data points (N). The formula for this is:
μ = (Σxi) / N
For example, consider a dataset with five values: {2, 4, 6, 8, 10}. To find the mean:
μ = (2 + 4 + 6 + 8 + 10) / 5 = 30 / 5 = 6
2. Find deviations from the mean:
Substract the mean value (μ) from each individual data point (xi). This will give you a list of deviations.
Example:
– For value ‘2’: deviation = (2 – 6) = -4
– For value ‘4’: deviation = (4 – 6) = -2
– For value ‘6’: deviation = (6 – 6) = 0
– For value ‘8’: deviation = (8 – 6) = 2
– For value ’10’: deviation = (10 – 6) = 4
3. Square the deviations:
Now, square each of the deviations derived in step 2. This eliminates any negative signs and makes it easier to compare values.
Example:
– For value ‘-4’: square = (-4)^2 = 16
– For value ‘-2’: square = (-2)^2 = 4
– For value ‘0’: square = (0)^2 = 0
– For value ‘2’: square = (2)^2 = 4
– For value ‘4’: square = (4)^2 = 16
4. Find the mean of squared deviations:
Add up all the squared deviations and divide by the total number of data points to get the mean of squared deviations.
Mean of squared deviations (also called variance) = (Σ(square of deviations)) / N
Example:
Variance = (16 + 4 + 0 + 4 + 16) / 5 = 40 / 5 = 8
5. Calculate standard deviation:
Finally, take the square root of the variance to obtain the standard deviation.
Standard deviation (σ) = √Variance
Example:
σ = √8 ≈ 2.83
Congratulations! You have now successfully calculated standard deviation for your dataset. With practice, you’ll be able to compute SDs with ease and improve your understanding and interpretation of datasets through this important statistical measure.