Standard deviation measures how much the values in a data set vary from the mean. It helps describe the spread or dispersion of a data set and for comparing the variability of different data sets.
In this blog post, I will explain what standard deviation means, how to find or calculate it for populations and samples, and how to interpret it in different contexts.
What is Standard Deviation?
Standard deviation is a statistic that tells you how closely the values in a data set are clustered around the mean.
A low standard deviation means that most values are close to the mean, while a high standard deviation means that the values are spread over a broader range.
For example, suppose you have two data sets of test scores:
1. Data set A: 80, 82, 84, 86, 88
2. Data set B: 60, 70, 80, 90, 100
Both data sets have the same mean of 84 but different standard deviations. Data set A has a standard deviation of 2.83, while set B has a standard deviation of 14.14.
This means the values in Data Set A are more consistent and less variable than those in Data Set B.
Standard deviation can help you understand how representative the mean is of the data set and how likely it is to find values that are far from the mean.
For example, if you have a data set with a low standard deviation, you can be more confident that the mean summarizes the data well and that most values are close to the mean.
On the other hand, if you have a data set with a high standard deviation, you can expect to find more outliers and extreme values, and the mean may not be a good indicator of the typical value.
Standard Deviation Formulas for Populations and Samples
There are two formulas for calculating standard deviation, depending on whether you deal with a population or a sample.
A population is the entire group of interest, while a sample is a subset of the population used to make inferences about the population.
The formula for the standard deviation of a population is:
SD population = ∑ | x − μ | 2 N
Where:
– SD population is the standard deviation of the population
– ∑ means “sum of”
– x is a value in the population
– μ is the mean of the population
– N is the number of values in the population
The formula for the standard deviation of a sample is:
SD sample = ∑ | x − x ¯ | 2 n − 1
Where:
– SD sample is the standard deviation of the sample
– ∑ means “sum of”
– x is a value in the sample
– x ¯ is the mean of the sample
– n is the number of values in the sample
The difference between the two formulas is that the sample formula uses n − 1 instead of N in the denominator.
This is because the sample mean estimates the population mean, and using n − 1 makes the standard deviation more accurate and unbiased.
Standard Deviation Calculator
You can use a standard deviation calculator to calculate standard deviation quickly and easily. This tool takes your data as input and computes your standard deviation. You can find a standard deviation calculator online, such as [this one] (^1^).
To use the standard deviation calculator, you must enter your data values, separated by commas, and choose whether to calculate the standard deviation for a population or a sample.
Then, click the “Calculate” button, and the calculator will display your data’s mean and standard deviation.
For example, if you enter the data set A from the previous section (80, 82, 84, 86, 88) and choose the sample option, the calculator will show you the following results:
1. Mean: 84
2. Standard deviation: 3.16
Steps for Calculating the Standard Deviation by Hand
If you want to calculate the standard deviation by hand, you can follow these steps:
1. Find the mean of your data set. To do this, add up all the values and divide by the number of values. For example, if your data set is 6, 2, 3, 1, the mean is (6 + 2 + 3 + 1) / 4 = 3.
2. For each value in your data set, find the difference between the value and the mean and square the difference. For example, for the value 6, the difference is 6 − 3 = 3, and the square is 3^2 = 9.
3. Add up all the squared differences. This is called the sum of squares. For example, if your squared differences are 9, 1, 0, 4, the sum of squares is 9 + 1 + 0 + 4 = 14.
4. Divide the sum of squares by the number of values (for a population) or by the number of values minus one (for a sample). This is called the variance. For example, if you have a sample of 4 values, the variance is 14 / (4 − 1) = 4.67.
5. Take the square root of the variance. This is the standard deviation. For example, the square root of 4.67 is 2.16.
Why is Standard Deviation a Useful Measure of Variability?
Standard deviation is a useful measure of variability because it has several advantages over other measures, such as range or interquartile range. Some of these advantages are:
- Standard deviation considers all the values in the data set, not just the extreme or middle values.
- Standard deviation is easy to interpret and compare, as it has the same unit as the original data.
- Standard deviation is widely used in statistics and other fields and is often required for specific calculations and tests.
See; How to Multiply Fractions
Limitations of Standard Deviation
The standard deviation has a lot of uses and advantages. However, standard deviation also has some limitations, such as:
- Standard deviation is sensitive to outliers, values significantly different from the rest of the data. Outliers can inflate the standard deviation and make it seem more significant than it is.
- Standard deviation is only meaningful for data following a normal distribution, a symmetrical bell-shaped curve. For skewed data or with multiple peaks, the standard deviation may not be a good measure of variability.
Therefore, when using standard deviation, you should always check the shape of your data distribution and look for any outliers or anomalies that may affect your results.