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Methods of calculation of standard deviation
a.Calculation of Standard Deviation - Individual Series: There are two methods of calculating standard deviation in an individual observation or series
a.Deviation Taken from Actual Mean: This method is adopted when the mean is a whole number of an even number . the followings are the steps.
1.Find out the actual mean of the series (x¯ ) .
2.Find out the deviation of each value from the mean ( X - x¯)
3.Square the deviations and take the total of squared devotions∑ X2.
4. Divide the total (∑X2) by the number of observations. The square root of the quotient is standard deviation. Thus apply the following formula:
= √∑X2/ N or √ ∑ (X- x¯ )/ N
Chi Square Test for Independence of Attribute The chi square test can be used to find out whether two or more attributes are associated or not. This test helps in fin
a pipe lis dur for rpair,the repair would cost 10000 and it would last for 3 years.alternatively a new pipe line can be purchase at 30000 for 10 years.assuming 10% depriciation rat
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Disadvantage of standard Deviation It is not easy to understand and calculate. It gives more weight to the extremes and less to the items nearer to mean. Since
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