Properties of standard deviation, Applied Statistics

Assignment Help:

PROPERTIES

 

1. The value of standard deviation remains the same if, in a series each of the observation is increased or decreased by a constant quantity. In statistical language, we say standard deviation is independent of change of origin.

         For example, for the observations 3, 10 and 12 then μ = 8.33 and σ= 3.859.

If we increase the value of each observation by 4.5, we get the observations 7.5, 14.5 and 16.5.

         Now,  μ   = 12.833 and  σ = 3.859

         Hence although  μ  has increased by 4.5,  σ  remains the same.

2. For a given series, if each observation is multiplied or divided by a constant quantity, standard deviation will also be similarly affected.

Consider the observations 3, 10, 12.  σ  = 3.859 as shown in the above calculation.

Suppose we multiply each observation by 6, the observations become 18, 60 and 72.

  μ   =  50

σ

= 1353_properties of standard deviation.png
  = 23.152

  Which is nothing but the earlier  σ , 3.859 x 6.

In short, standard deviation is independent of any change of origin, but dependent on the change of scale.

3. Standard deviation is the minimum root-mean-square deviation. In other words, the sum of the squares of the deviations of items of any series from a value other than the arithmetic mean would always be greater.

4. Just as it is possible to compute combined mean of two or more groups, it is also possible to compute combined standard deviation of two or more groups. Combined standard deviation denoted by  σ12 is computed as follows:

σ12

= 1001_properties of standard deviation1.png

where,

μ1

=  Mean of first group

μ2

= Mean of second group

σ1

= Standard deviation of first group

σ2

= Standard deviation of second group

N1 

Number of observations in the first group

N2

= Number of observations in the second group

d1

= μ1 -  μ

d2

= μ2 -  μ

μ

 = (N1  μ1 + N2 μ2 ) / (N1 + N2)

Related Discussions:- Properties of standard deviation

Standard deviation, Standard Deviation The main drawback of the deviati...

Standard Deviation The main drawback of the deviation measures of dispersion, as discussed earlier, is that the positive and negative deviations cancel out each other. Use of t

Utility function, The decision maker ranks lotteries according to the utili...

The decision maker ranks lotteries according to the utility function (i) State the independence assumption. Does this decision maker satisfy it? (ii) Is this decision ma

Harmonic mean, Harmonic Mean  The harmonic mean  also called harmonic  ...

Harmonic Mean  The harmonic mean  also called harmonic  average, in the total numbers of items of variable divided by the sum of r reciprocals of the values of the variable. In

Muti linear regression model problem, Muti linear regression model problem ...

Muti linear regression model problem An investigator is studying the relationship between weight (in pounds) and height (in inches) using data from a sample of 126 high school

Chi square test, application of chi square test in civil engineering

application of chi square test in civil engineering

Median for ungrouped data, If the data set contains an odd number of items,...

If the data set contains an odd number of items, the middle item of the array is the median. If there is an even number of items, the median is the average of the two items. If the

Large-sample and small-sample simulations, Show that when h = h* for the h...

Show that when h = h* for the histogram, the contribution to AMISE of the IV and ISB terms is asymptotically in the ratio 2:1. Compare the sensitivity of the AMISE(ch) in Equa

Simplex method, #questionMaximize Z= 3x1 + 2X2 Subject to the constraints: ...

#questionMaximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0..

business forecasting, Explain the characteristics of business forecasting

Explain the characteristics of business forecasting.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd