MC-VPAA-FN-0008-CM012021

September 22, 2021

Statistical Analysis
with Software
Application
Module No. 4

BS Entrepreneurship

Kim E. Ganub
PART TIME INSTRUCTOR
 Instructional Course Module No. 4
Instructor: Kim E. Ganub

Subject Code : BUS STAT 1

Descriptive Title : Statistical Analysis with Software Application

I. Greeting/Salutation

Hello students, welcome to 1st semester of academic year 2021-

2022. Given the current pandemic, face-to-face teaching were canceled
and as an alternative we use modular method. We will work together to
maintain health and safety standards, while sustaining the academic
excellence. Please reach out to us whenever you have questions. We are
here to support you every step of the way in your journey to the
graduation stage. Good luck and keep safe.

II. Course Description

This course is designed for students to learn the statistical
software and its application in data analyses and expanding their
understanding of statistical inferences. In this subject, we will
introduce the platform of PSPP and focus on the application of PSPP in
data analyses (descriptive statistics and selected inferential statistics
will be covered). Students will learn to program using PSPP and
interpret the result from PSPP.

III. Objectives
This module is designed for you to:

✓ Define the range, standard deviation, and variance.

✓ Know the purpose of variability.
✓ Calculate the range, standard deviation, and variance.

IV. General Instructional Guidelines

To my students, these are the guidelines based on the distance learning

that we follow. Kindly read the following.

1. You can reach me at this number 09972417111 for questions and

clarifications regarding with the topic and tasks allotted for the week. You can
still do transactions beyond the schedule. However, you need to wait for the
reply as the teacher has ancillary tasks to fulfill.
2. Use separate sheets of paper when answering activities of your self-
learning module. Write legibly. Take note of the set deadlines in order for you
to be on time.
3. You are required to submit your output/answer to my facebook messenger
account Kim Ganub (kikim). Please join our messenger group chat, BUS
STAT1A for section A, BUS STAT1B for section B, and BUS STAT1C for section
C.
V. Learning Outcomes
The learners are expected to be able to:
✓ Know the concept of range and standard deviation.
✓ Calculate the range and standard deviation for population and
sample
✓ Describe the degree to which the score is spread out or
clustered together.

VI. Pre-Test Evaluation (10 item multiple-choice)

Direction: Answer directly.
1. It provides a quantitative measure of the differences between scores in a
distribution and describes the degree to which the scores are spread out or clustered
together.

A. Variability B. Sum of Squares C. Range D. Variance

2. It is the distance covered by the scores in a distribution, from the smallest score
to the largest score.
A. Standard Deviation B. Sum of Squares C. Range D. Variance

3. It is distance from the mean.

A. Deviation B. Sum of Squares C. Range D. Variance

4. It is the average squared distance from the mean.

A. Deviation B. Sum of Squares C. Range D. Variance

5. It is the square root of the variance and provides a measure of the standard, or
average, distance from the mean.
A. Standard Deviation B. Variability C. Range D. Variance

6. It is the sum of the squared deviation scores.

A. Standard Deviation B. Sum of Squares C. Range D. Variance

7. What will happen to the variability of a particular set of scores when the scores
are all the same?
A. Small Variability B. No Variability C. Large Variability D. Medium Variability
8. What will happen to the variability of a particular set of scores when the scores
are large?
A. Small Variability B. No Variability C. Large Variability D. Medium Variability
9. What will happen to the variability of a particular set of scores when the scores
are small?
A. Small Variability B. No Variability C. Large Variability D. Medium Variability
10. What does the negative sign of a deviation score indicate?
A. The score is above the mean
B The score is below the mean
C It indicates nothing
D None of the above

VII. Discussions
Variability

Overview

The term variability has much the same meaning in statistics as it has in
everyday language; to say that things are variable means that they are not all the
same. In statistics, our goal is to measure the amount of variability for a particular
set of scores, a distribution. In simple terms, if the scores in a distribution are all the
same, then there is no variability. If there are small differences between scores, then
the variability is small, and if there are large differences between scores, then the
variability is large.

DEFINITION: Variability provides a quantitative measure of the differences

between scores in a distribution and describes the degree to which the scores are
spread out or clustered together.

Figure 1 Population Distributions of Adult Heights and Adult Weights.

Notice that the distributions differ in terms of variability. For example, most
heights are clustered close together, within 5 or 6 inches of the mean. On the other
hand, weights are spread over a much wider range. The purpose for measuring
variability is to obtain an objective measure of how the scores are spread out in a
distribution. In general, a good measure of variability serves two purposes:

1. Variability describes the distribution. Specifically, it tells whether the scores are
clustered close together or are spread out over a large distance.
2. Variability measures how well an individual score (or group of scores) represents
the entire distribution

In this chapter, we consider three different measures of variability: the

range, standard deviation, and the variance.

Lesson 1
The Range

The range simply measures the difference between the largest score (𝑋𝑚𝑎𝑥 )
and the smallest score (𝑋𝑚𝑖𝑛 ), without any reference to real limits.
The formula for the population range is
𝑟𝑎𝑛𝑔𝑒 = 𝑋𝑚𝑎𝑥 − 𝑋𝑚𝑖𝑛

DEFINITION : The range is the distance covered by the scores in a distribution,

from the smallest score.
to the largest score.

Example 1
For the following set of scores
3, 7, 4, 6, 5, 10
the range is
𝑟𝑎𝑛𝑔𝑒 = 𝑋𝑚𝑎𝑥 − 𝑋𝑚𝑖𝑛
= 10 – 3
=7

Lesson 2
Variance and Standard Deviation for a Population

2.1 STANDARD DEVIATION AND VARIANCE FOR A POPULATION

The standard deviation is the most commonly used and the most important
measure of variability. Standard deviation uses the mean of the distribution as a
reference point and measures variability by considering the distance between each
score and the mean.

STEP 1: The first step in finding the standard distance from the mean is to determine
the deviation, or distance from the mean, for each individual score. By definition, the
deviation for each score is the difference between the score and the mean.

DEFINITION: Deviation is distance from the mean:

deviation score = 𝑋 − 𝜇
2.2 FINDING THE MEDIAN FOR MOST DISTRIBUTIONS
Example 2

For a distribution of scores with 𝜇 = 50, if your score is X = 53, then your
deviation score is

X – 𝜇 = 53 – 50 = 3

If your score is X = 45, then your deviation score is

X – 𝜇 = 45 – 50 = –5

Notice that there are two parts to a deviation score: the sign (+ or –) and the
number. The sign tells the direction from the mean—that is, whether the score is
located above (+) or below (–) the mean.

STEP 2 : Because our goal is to compute a measure of the standard distance from
the mean, the obvious next step is to calculate the mean of the deviation scores. To
compute this mean, you first add up the deviation scores and then divide by N. This
process is demonstrated in the following example.

Example 3

We start with the following set of N = 4 scores. These scores add up to∑ X = 12,
12 ∑X
so the mean is 𝜇 = 4
= 3 (𝜇 = 𝑁
𝑚𝑒𝑎𝑛 𝑓𝑜𝑟𝑚𝑢𝑙𝑎). For each score, we have computed
the deviation.

X X- 𝝁
8 +5
1 -2
3 0
0 -3

STEP 3 : The average of the deviation scores does not work as a measure of variability
because it is always zero. Clearly, this problem results from the positive and negative
values canceling each other out. The solution is to get rid of the signs (+ and –). The
standard procedure for accomplishing this is to square each deviation score. Using
the squared values, you then compute the mean squared deviation, which is called
variance.

DEFINITION: Population variance equals the mean squared deviation. Variance is

the average squared distance from the mean.

The variance is given by this formula,

∑(𝐗 – 𝝁)𝟐
𝑣𝑎𝑟𝑖𝑎𝑛𝑐𝑒 =
𝑁
STEP 4: Remember that our goal is to compute a measure of the standard distance
from the mean. Variance, which measures the average squared distance from the
mean, is not exactly what we want. The final step simply takes the square root of the
variance to obtain the standard deviation, which measures the standard distance
from the mean.

DEFINITION: Standard deviation is the square root of the variance and provides a
measure of the standard, or average, distance from the mean.
Standard deviation = √𝑣𝑎𝑟𝑖𝑎𝑛𝑐𝑒

Example 4: (From Step 1 – Step 4)

We will calculate the variance and standard deviation for the following
30
population of N = 5 scores: 1, 9, 5, 8, 7. ∑ X = 30 𝑎𝑛𝑑 𝜇 = 5
=6

Score Deviation Squared

X (X – 𝝁 ) Deviation
(X – 𝝁)𝟐
1 -5 25
9 3 9
5 -1 1
8 2 4
7 1 ______1______
40 = the
sum of
deviation

Step 1: Calculate the deviation in each score.

For X = 1, 1 - 6 = -5
For X = 9, 9 –6=3
For X = 5, 5 – 6 = -1
For X = 8, 8 –6=2
For X = 7, 7 –6=1

Step 2 : Calculate the mean.

∑ X = 30 for N = 5
∑X 30
the mean is 𝜇 = 𝑁
= 5
=6

Step 3 : Calculate the squared deviation.

X Scores X–𝝁 (X – 𝝁)𝟐

For X = 1, 1 - 6 = -5 −52 = 25
For X = 9, 9–6=3 32 = 9
For X = 5, 5 – 6 = -1 12 = 1
For X = 8, 8–6=2 22 = 4
For X = 7, 7–6=1 12 = 1
Step 4 : Calculate the variance and standard deviation.
∑(𝐗 – 𝝁)𝟐 40
𝑣𝑎𝑟𝑖𝑎𝑛𝑐𝑒 = 𝑁
= 5
=8

Then,

Standard deviation = √𝑣𝑎𝑟𝑖𝑎𝑛𝑐𝑒 = √8 = 2.83

2.2 FORMULAS FOR POPULATION VARIANCE AND STANDARD DEVIATION

The concepts of standard deviation and variance are the same for both
samples and populations. However, the details of the calculations differ slightly,
depending on whether you have data from a sample or from a complete population.
We will first consider the formula for the sample.

1. The sum of squared deviations (SS). Recall that variance is defined as the mean
of the squared deviations. This mean is computed in exactly the same way you
compute any mean: First find the sum, and then divide by the number of scores.
𝑠𝑢𝑚 𝑜𝑓 𝑠𝑞𝑢𝑎𝑟𝑒𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛
variance = mean squared deviation =
𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠𝑐𝑜𝑟𝑒𝑠
DEFINITION: SS, or sum of squares, is the sum of the squared deviation scores.

You need to know two formulas to compute SS. These formulas are
algebraically equivalent (they always produce the same answer), but they look
different and are used in different situations.

The first of these formulas is called the definitional formula because the
symbols in the formula literally define the process of adding up the squared
deviations:

𝐷𝑒𝑓𝑖𝑛𝑖𝑡𝑖𝑜𝑛𝑎𝑙 𝑓𝑜𝑟𝑚𝑢𝑙𝑎𝑠: 𝑆𝑆 = ∑(𝐗 – 𝝁)𝟐

To find the sum of the squared deviations, the formula instructs you to perform the
following sequence of calculations:

1. Find each deviation score ( X – 𝝁 ).

2. Square each deviation score ( 𝐗 – 𝝁 )𝟐 .
3. Add the squared deviations.

Example 5
We compute SS for the following set of N = 4 scores. These scores have a sum
8
of ∑ X = 8, so the mean is = 4
= 2. The following table shows the deviation and the
squared deviation for each score. The sum of the squared deviation is SS = 22.
 Although the definitional formula is the most direct method for computing SS,
it can be awkward to use. In particular, when the mean is not a whole number, the
deviations all contain decimals or fractions, and the calculations become difficult.
The alternative, known as the computational formula, performs calculations with the
scores (not the deviations) and therefore minimizes the complications of decimals
and fractions.
2
(∑ 𝑋)
𝑐𝑜𝑚𝑝𝑢𝑡𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝑓𝑜𝑟𝑚𝑢𝑙𝑎 = ∑ 𝑋 2 − 𝑁

Example 5

The computational formula can be used to calculate SS for the same set of N
= 4 scores we used in Example 5.

2.3 FINAL FORMULAS AND NOTATION

1. Population Variance
𝑆𝑆
Variance = 𝑁

2. Standard Deviation

𝑆𝑆
standard deviation = √
𝑁

3. Population Standard Deviation

𝑆𝑆
population standard deviation = 𝜎 = √𝜎 2 = √ 𝑁 ( 𝜎 notation for standard deviation )

𝑆𝑆
population variance = 𝜎 2 = 𝑁
(𝜎 2 𝑛𝑜𝑡𝑎𝑡𝑖𝑜𝑛 𝑓𝑜𝑟 𝑝𝑜𝑝. 𝑣𝑎𝑟𝑖𝑎𝑛𝑐𝑒)
 In Examples 4 and 5, we computed the sum of squared deviations for a simple
population of N = 4 scores (1, 0, 6, 1) and obtained SS = 22. For this population, the
variance is
𝑆𝑆 22
𝜎2 = 𝑁
= 4
= 5.50

and the standard deviation is 𝜎 = √5.50 = 2.345

Lesson 3
Standard Deviation and Variance for Samples

The calculations of variance and standard deviation for a sample follow the
same steps that were used to find population variance and standard deviation.
Except for minor changes in notation, the first three steps in this process are exactly
the same for a sample as they were for a population. That is, calculating the sum of
the squared deviations, SS, is the same for a sample as it is for a population. The
changes in notation involve using M for the sample mean instead of 𝜇, and using n
(instead of N) for the number of scores. Thus, to find the SS for a sample

1. Find the deviation from the mean for each score: deviation (X – 𝑀).
2. Square each deviation: squared deviation (X – 𝑀)2 .
3. Add the squared deviations: SS = ∑(𝑋 − 𝑀)2

These three steps can be summarized in a definitional formula for SS:

definitional Formula: SS = ∑(𝑋 − 𝑀)2
The value of SS also can be obtained using a computational formula.
2
(∑ 𝑋)
𝑐𝑜𝑚𝑝𝑢𝑡𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝑓𝑜𝑟𝑚𝑢𝑙𝑎: 𝑆𝑆 = ∑ 𝑋 2 −
𝑛
The mean of the population can be computed using the formula below,
∑𝑋
𝑚𝑒𝑎𝑛 𝑜𝑓 𝑡ℎ𝑒 𝑝𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛 = 𝑀 = 𝑛
Sample variance (identified by the symbol s2) is defined as
𝑆𝑆
𝑠𝑎𝑚𝑝𝑙𝑒 𝑣𝑎𝑟𝑖𝑎𝑛𝑐𝑒 = 𝑠 2 =
𝑛−1
Sample standard deviation (identified by the symbol s) is simply the square root of
the variance.
𝑆𝑆
𝑠𝑎𝑚𝑝𝑙𝑒 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛 = 𝑠 = √𝑠 2 = √
𝑛−1
The n-1 is called the degrees of freedom.

DEFINITION: For a sample of n scores, the degrees of freedom, or df, for the sample
variance are defined as df = n – 1. The degrees of freedom determine the number
of scores in the sample that are independent and free to vary.
 Example 6
We have selected a sample of n = 7 scores from a population. The scores are
1, 6, 4, 3, 8, 7, 6.
We begin the calculations by finding the value of SS for this sample. Because
there are only a few scores and the mean is a whole number (M = 5), the definitional
formula is easy to use. The scores, the deviations, and the squared deviations are
shown in the following table.

Score X Deviation Squared

X-M Deviation
(𝑿 − 𝑴)𝟐
1 -4 16
6 1 1
4 -1 1
3 -2 4
8 3 9
7 2 4
6 1 _____1_____
36 = SS
= ∑(𝑋 − 𝑀)2

The sum of squared deviations for this sample is SS = 36. Continuing

the calculations,
𝑆𝑆 36
𝑠2 = = =6
𝑛−1 7−1
Finally, the standard deviation is
𝑠 = √𝑠 2 = √6 = 2.45

VIII. Post-Test Evaluation Activity (4 item problem solving)

Direction: Copy and answer. Provide necessary solution.
(1pt) 1. Compute the range of the following scores: 101, 99, 150, 100, 89.
(8pts) 2. For the following set of scores: 1, 4, 6, 8, 4. Assume that this is a
population of N = 5 scores and compute the standard deviation and variance
for the population.

(8pts) 3. Using the following scores: . Assume that this is a sample of n = 5

scores and compute standard deviation and variance for the sample.

(3 pts) 4. Compute the sum of square of the population using the following
scores: 2, 4, 6, 8, 10.
IX. Terminology/Definition of Terms

1.Variability - Variability provides a quantitative measure of the differences between

scores in a distribution and describes the degree to which the scores are spread out
or clustered together.
2. Range - The range is the distance covered by the scores in a distribution, from the
smallest score to the largest score.

3. Deviation - Deviation is distance from the mean:

deviation score = 𝑋 − 𝜇
4. Population Variance - Population variance equals the mean squared deviation.
Variance is the average squared distance from the mean.
5. Standard deviation - is the square root of the variance and provides a measure
of the standard, or average, distance from the mean.
6. Sum of Square - SS, or sum of squares, is the sum of the squared deviation scores.

X. Summary
1. The purpose of variability is to measure and describe the degree to which the
scores in a distribution are spread out or clustered together. There are three basic
measures of variability: the range, the variance, and the
standard deviation.
The range is the distance covered by the set of scores, from the smallest score
to the largest score. The range is completely determined by the two extreme scores
and is considered to be a relatively crude measure of variability.
Standard deviation and variance are the most commonly used measures of
variability. Both of these measures are based on the idea that each score can be
described in terms of its deviation, or distance, from the
mean. The variance is the mean of the squared deviations. The standard deviation
is the square root of the variance and provides a measure of the standard distance
from the mean.

2. To calculate variance or standard deviation, you first need to find the sum of the
squared deviations, SS. Except for minor changes in notation, the calculation of SS
is identical for samples and populations. There are two methods for calculating SS:

I. By definition, you can find SS using the following steps:

a. Find the deviation (X – 𝜇 ) for each score.
b. Square each deviation.
c. Add the squared deviations.

This process can be summarized in a formula as follows:

𝐷𝑒𝑓𝑖𝑛𝑖𝑡𝑖𝑜𝑛𝑎𝑙 𝑓𝑜𝑟𝑚𝑢𝑙𝑎: 𝑆𝑆 = ∑(𝑋 − 𝜇)
II. The sum of the squared deviations can also be found using a computational
formula, which is especially useful when the mean is not a whole number:
2 2
(∑ 𝑋)
𝐶𝑜𝑚𝑝𝑢𝑡𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝑓𝑜𝑟𝑚𝑢𝑙𝑎: 𝑆𝑆 = ∑ 𝑋 −
𝑁
3. Variance is the mean squared deviation and is obtained by finding the sum of the
squared deviations and then dividing by the number of scores. For a population,
variance is
𝑆𝑆
𝜎2 =
𝑁
For a sample, only n – 1 of the scores are free to vary (degrees of freedom or df = n –
1), so sample variance is
𝑆𝑆 𝑆𝑆
𝑠2 = =
𝑛 𝑑𝑓
Using n – 1 in the sample formula makes the sample variance an accurate and
unbiased estimate of the population variance.

4. Standard deviation is the square root of the variance. For a population, this is
𝑆𝑆
𝜎= √
𝑁
Sample standard deviation is
𝑆𝑆 𝑆𝑆
𝑠= √ =√
𝑛−1 𝑑𝑓

XI. Rubrics/Criteria for the Assessments Conducted

Direct Grading

XII. References (Resources and Media)

Gravetter F. J., Wallnau L. B. (2009). Statistics for the Behavioral Sciences (9 th Edition).
Toronto: Thompson.

Elliot A. C., Woodward W. A. (2007). Statistical Analysis Quick Reference Guidebook: With
SPSS Examples.