STANDARD DEVIATION

Defnition : Standard Deviation is the root mean

square deviation of the values from their arithmetic mean.
SD. is the abbreviation and o (read, sigma) is the symbol.
Mean square deviation of the values from their A.M. is
Variance and is denoted by o. S.D.is the positive square
root of variance. Karl Pearson introduced the concept 'of
standard deviation in 1893. S.D. is also called root mean
square deviation. It is a mathematical deficiency of mean
deviation toignore negative sign. Standard deviation possesses
most of the desirable properties of a good measure of
dispersion.It is the most widely used absolute measure of
dispersion. The corresponding relative me asureis Coefficiernt
of
Variation. It is very popular and so extensively used as
raise a doubt whether there is any other relatuve measure ot
dispersion.
Coefficient of Variation = S tan dard Deviation
Arithmetic Mean x 100
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Formulae
Method Individual Discrete
Observations Series 1oE Continuous
Series

1. Actual (x-)
N
x-N (m
11 N
Mean
2.Direct Ex*_[Efx' 2fm Zfm
Method
NN

3.Asumed. N
Mean
4.Step Deviation

Cx Ef d2 Sfd
Cx
N N N
CxN N

Individual Observations
Method 1:
Deviations taken from Actual Mean.
Standard Deviation, g=,2XN where x = X-X. This method 1s
simple when X- X values are
integers,
Steps:
1. Form a table with the given values, Xin first column
the
2. Find out the
3. Find out thearithmetic mean, X (= X/N). actual
deviation of each value from the
mean and callit x. ie., find x = X- X.
next column. Enter those values inthe
4. Find out the
from the actual mean,squares of the values
i.e., find x2, deviations of the
Enter those values in
next column.
5. Find out the mean of the squared deviations ofthe
values from their arithmetic mean. i.e., find E
X'/ N.
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6. Find out the square root of X2/ N. It is the standard
deviation.
Example 16 :77, 73, 75, 70, 72, 76, 75, 72, 74, 76.
Gire standard deviation for the numbers given above.
(B.Com. Bharathidasan, N01)
Solution :
X x=X-X
X=74 Arithmetic Mean,X=
77 3 9 740
73 -11 10
75 1 1 = 74.
70 -4 16
72 -2 4 Standard Deviation, o =
76 2 4
75 1 1 |44
72 -24 V10
74 0 0
FJ44
76 24 = 2.10

EX S(X-X) Sx2
= 740 =0 = 44
Method 2 : Direct Method. Without taking any
deviations, the standard deviation can directly be caleulated
by the formula.

Standard Deviation, o= N
This formula is
This method can be used for allkinds of data,calculations.
used later for correcting the mistakes in the
Steps: values, X, in the first
1. Form a table with the given
column.
write it in the next column
2. Find the square of each Xand
under the title X.
EX and N, the number of
3. Find the totals, EX and
values.
formula and simplify.
4. Substitute in the above
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Example 17: 10students of B.Com. class of a College
have obtained the foliowing marks in Statistics out of 100
marks.
Calculate the standard deviation.
S.No. 1 2 3 4 5 6 7 8 9 10
Marks 5 10 20 25 40 42 45 48 70 80
(B.Com. (C.A.) Bharathiar, A 01)
Solution:
S. Marks
No. X X2 Standard Deviation,
1 5 25
2 10 100
3 20 400
4 25 625
5 40 1600
20143 _(385)2
10 10
6 42 1764
7 45 2025 J2014.3 -(38.5)
8 48 2304
70
J2014.30 -1482.25
4900
10 80 6400 V532.05
= 23.07
Total EX= X'=
385 20143
Method3:Deviations taken from Assumned Mean.
This issame as the one followed in the calculation of
arithmetic mean, But the formula is as follows:
Standard Deviation, g=VN
d =X- Ais preferred when X-X are
fractions.
Steps
1. Form a table with the given values, X, in the first
column.
2. Assume any value as Aifit is not
It is preferable to assume a value in specified in a problem
value and the maximum value of X as between
A.
the minimum
3. Find out the deviation of each value from
mean A and call it d. i.e., find d = X-A and writethe assumed
them in the
next column.
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4. Write the squares of the deviations, d2,in the next col
umn,

5. Find Sd and d and identify N, the number of values.

Substitute them in the above formula and simplify.
Example 18: For the data below, calculate standard
deviation.
40 50 60 70 80 90 100
(B.Com. Bharathiar, A 02)
Solution :
X d= X-A d2
A=70 Standard Deviation,
40 -30 900
50 -20 400 NN
60 -10 100 (012
70 0 2800 -(
80 10 100
90 20 400 V400-0
100 30 900 =J400
= 20
Total zd= d2=
2800

Method 4 : Step Deviation Method. This is same

as the onefollowed in the calculation of arithmetic mean. But
the formula is as follows:

Standard Deviation, o=OxN

-X are fractions and
This method is preferred when X
between X.
there is common difference
Steps values X, in the first column.
1. Form a table with the given under Arithmetic Mean.
2. Choose A andC as mentionedcorresponding to each X.
3. Find out the step deviation
column.
i.e.,findd'= A andwrite those values in the next
the squares of d'. i.e,, d'2, in the next column
4. Write
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5. Find s and and identify N, the number of
values. Substitute them in the above formula and simplify.
Example 19: Given below are the marks obtained by 5
B.Com. students.
Roll No. 101 102 103 104 105
Marks 10 30 20 25 15
Calculate standard deviation.
Solution:
(B.Com.Bharathiar, A2K)
StandardDeviation,
Roll Marks d' =A 2
No. X
C
A=20; = Cx[Ld'
C=5
101
102
10
30
-2
2
4 - 5x10 _(9?
4
103 20 0 0 = 5x J2-0
104 25 1 1
105 15 = 5x J2-0
-1 1
Total Ed=
=J5x 0
= 5x1.4142
10
= 7.07
Note : A problem can be
Discrete Series solved by any one method.
Method 1:
Deviations taken from Actual Mean.
Standard Deviation, o = VN
where x=X-X and N = Ef
Steps :
1. Find out the
2. Find out the arithmetie
deviation ofmean, X.
and call it x. ie ,ind x = X-X. each X from the actual
mean
3. Find out x values,
4. Multiply each
5. Find sfx? xby the corresponding f and get fx²
6. Divide zfx2 by N
and find
square root of the
quotient. i.e, find 2
VN
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Example 20: Calculate the standard deviation of the
following series.
X 6 9 12 15 18
f 7 12 13 10 8
Solution :
X=X-X
X f fX X=12 fx'
6 7 42 -6 36 252
9 12 108 -3 9 108
12 13 156
15 10 150 9 90
18 144 6 36 288
Total N= sfX= fx'=
50 600 738

EfX
Arithmetic Mean, N

=
600
50
N = 12.00
|Efx?
Standard Deviation,
738
V 50
= S14.76
=3.84
the
Method 2 : Direct Method, Under this method,
formula becomes the following.
Standard Deviation, g = N
Steps : given values, X and the
1. Form a table with the
Irequencies, fin the first two columns. fto find fX. Write
each X by the corresponding
2. Multiply next column.
all such fX values in the
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3. Multiply each fX by the corresponding X to find X2
(It is not (fX).That is, fX should not be squared) Write
such fX? values in the next column.
4. Find N(= E), EfX and EfX2
5.Substitete in theabove formula and simplify. o
Exanple 21 :Calculate the standard deviation.
No.of Goals
Scored in a Match (X) 0 1 23 4 5
No.of Matches () 1 2 4 3 0 2
Solution : Standard Deviation,
Xf X fX
1 00
N
1 2 2 2
2 4 16 95 _(29)
3 3 9 27 V12 12
0
4 0
J7.9167-(24167)
5 2 10 50
J79167-5.^
Total N sfX sfX?
=12 -29 -95 V2.0763
= 1.44
Method 3 : Deviations taken from Assumed
Mean. The formula is as follows:

Standard Deviation, g =
d=x-A A- Assumed Mean N=f
Steps:
1. Form a table with the given values, X and
frequencies, fin the first two columns,i the
2. ChoOse the value for A, assumed mean, if
specified.
it is not
3.Subtract A from each X and foa the next
d=X-A values.
column with
4. Multiply each d by the corresponding f and enter all
such products in the next column under the title fd.
5. Multiply each fd by the corresponding d and enter all
Such products in the next column under the title fd², (These
are not the squares of fd values)
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6.Find N (= 2), Efdand Efa2,
7. Substitute in the above formula and simplify.
Example 22: Calculate Standard Deviation from the
followingdata:
X 6 9 12 15 18
7 12 19 10 2
f
(B.B.M. Bharathiar, N 01)
Solution: Let X : 6, 9, 12, 15 and 18.
d=X-A fd fd?
X f A=12
-6 252
6 7
-36 108
12
19 0
12 lgn90
1510iaE 3 3 0
18b 2 s l i e t o 6 d12v2 S 7 2 t
fd= fd?
Total N=
-36 -522
50

Sfa fEfd
Standard Deviation, g = N N

= 522 -(-36|
V50 50

V1044-(0.72)2
= S10.4400 - 0.5184
= /9,9216
=3.15
Deviation Method. The following
Method 4: Step
formula is used.
Efd
Standard Deviation, o CxN
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Steps
1. Form a table with the given values, X and the
îequencies, f in the first two columns.
2.Choose Aand C as mentioned under Arithmetic Mean
3. Findout d' = C
Acorresponding to each Xand enter
them in the next column.
4.Multiply each d' by the corresponding fto get
them in the next column. fd'. Enter
5. Multiply each fd by the
Enter them in the next column. corresponding d' and get fd2
6. Find N(-2), 2fd and Zfd2
7. Substitute in the above
formula and simplify.
Example 23: The weekly salaries of a
group of
employees are given in the following table. Find the mean
standard deviation of the salaries. and
Salary (in Rs.) 75 80 85 90 95
No.of Persons 100
3 7 18 12 6 4

Solution: (B.Com.Bharathiar, N 2K)

Salary
(in Rs.)
No.of d= X-A
C
Persons
f fd' fd
75 3
A=85;C=5
80
85
90
18
7
ST-20-6
-1
-7
12
7
12 0
95 6 1 12
100 2 12
4 12 24
3
Total N 12 36
50 ba Efd?
- 23 =91
Arithmetic Mean,

-85(xa)
= 85+2.3 =
Rs. 87.30
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Standard Deviation.

5,91 (23
= 5x

-5x /82 -(046)2

5x JL8200-0.2116
= 5x J1.6084 mapelentD
= 5x 1.27
= Rs. 6.35
Continuous Series
When X in the formulae for the calculation of standard
deviation of discrete series is replaced by m the corresponding
formulae for continuous series are obtained.
The calculations start with the mid values (m) of the class
intervals and class frequencies (). When less than or more
than frequencies are given, class interval and class frequencies
are to be found first.
Method 1:Deviations taken from Actual Mean.
The formula is as follows:

Standard Deviation, o =
Er(m-R²
N
Steps
1. Forma table with class intervals and class frequencies
in the first two columns.
next
2. Find the mid values (m) and write them in the
column. next
3. Find the products of fand m and write them in the
column.
fm/N where N=Ef. Xmay be found by other
4. Find X= E
formulae also.
Subtract X from each m. Enter the resulting
m-X values in the next column.
6. Write (m-x) in the next column.
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7.Find f(m-X)2 andwrite them in the next column.
8. Find Sf(m-Xy2
9. Divide f(m-X by N and take the square root to get
the standard deviation.
Example 24: Find the standard deviation.
Class Interval :0-10 10-20 20-30 30-40 40-50 Total
Frequency :2 5 9 3 1 20
Solution:H
Class Frequency Mid m-X
Value
Interval f m fm X =23 (m- X )2 f (m-X )²
0-10 2 5 10 -18 324 648
10-20 1575 L 8 l64 320
20-30925 225e254 o 0 36
30-40 3 35 105 12 144a TO1 S432l
40-50 1 45
4522 484VUGO S484
Total N= abn fm=
20
- Ef(m-X)2=
460 1920
Arithmetic Mean,
460
20

9
Standard Deviation, zr(m-X
adne beni f1920 bi it bat S
20
Wen/96
=9,80
Method 2: Direct
Method. Under this method, the
form of the formula is as folloys:

Standard Deviation,o =

N uler X
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Steps :
1. Form a table with class intervals and frequencies in the
first two columns,
9 Find the mid values (m) and write them in the next
column.
3. Find the products of f and m and write those fm values
in the next column."
4. Find the products of m and fm and write those fm?
ralues in the next column.
5. Find N(= X), 2fm and fm2tleg Testt astt
6.Substitute in the formula and simplify.
Example 25: The following data were obtained while
observing the life span of a few neon lights of a company.
Calculate S.D.
Life Span (Years) : 4-6 6-8 8-10 10-1212-14 Total
No. of Neon Lights: 10 17 32 21 20 100

Solution:utindl onds sat nstek

Life Span No.of Neon Mid
(Years) Lights () Value(m) fmfm²
4- 6 10 50 250
6- 8 17 7 119 833
8-10 32 9 288 2592
10-12 21 11 231 2541
12-14 20 13 260 3380
Total N= fm fm?
100 948 = 9596

Standard Deviation, o =
9596(948)
100 |1007

J96.96 - (9.48)
S959600 -89 8704
=/60896 =2.47.
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Method 3: Deviations taken from Assumed
Mean. The following formula is used:
Standard Deviation, G= o=(20i
d=m-A and N= Ef.
Steps:
1. Form a table with class intervals and
first two columns. frequencies in the
2. Find the mid values (m)of the class
them in the next intervals and write
column.
3.Chose a suitable value for A, the
Subtract Afrom each m. Write the d(= m-A)assumed mean.
next column. values in the
4. Multiply d by the
fd in the nextcolumn. corresponding fand write the products
5. Multiply fd by the
corresponding d and write the
products fa in the next column.
6. Find N(= 2), Lfd and
7. Substitute in the above fa?.
formula and
Example 26: Calculate the standard simplify.
following series. deviation of the
No.of Students
in 00 (Below) 2 6 10
No.of Colleges 0 7 19 1418 22
42
26
61 72 80
Solution:
No.of No.of No.of No.of
Students Mid d= m-A
in 00
(Below)
CollegesStudentsColle
in 00ges Value A=12
f m
fd fa²
2 0 2- 6 7
6 7 4 56 448
10 6-10) 12 8 -4 -48 192
19
14 42
10-14 23 12 0 0 0
18
14-18 19 16 304
61 18-22 11 4 76
22 20 8 88 704
72 22-26 8
26 80 24 12 96 1152
Total N
80
xfd sfd'=
=156 2800
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Standard Deviation, o

|2800(156)2
V80 80

Jas-(195)
J35.0000 -3.8025
J31.1975
= 5.59
Method 4 : Step Deviation Method. The formula
used in this method is as follows:
2
= Cx
Efd2
NN
(Efd')
Standard Deviation, o

ë= ;N= Ef
Steps :
1 Form a table with class intervals and frequencies in the
first two columns.
2. Find the mid values (m) of the class intervals and write
them in the next column.
A
3. Choose values for A and C. Calculate d' =
corresponding to each m. Write the d' values in the next column.
4. Multiply f and d' in pairs and enter fd' values in the
next
column.
and enter thase fd'
5. Multiply fd' values by the respective d'squares
Values in the next column. (They are not the of fd').
6. FindN (=E), E fd' and E fd'',
7.Substitute in the above formula and simplify.
Example 27: Calculate the standard deviation of the
following frequency distribution.
Annual Profit (Rs.Crores) : 20-40 40-60 60-80 80-100
48
10 14 25
No.of Banks:
Annual Profit (Rs, (rores) :100-120 120-140 140-160
16
No.of Banks: 33 24
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Sclution:
AnnualProfit No.of Mid Value d' nA
(Rs.Crores) Banks m A=90;C=20 fd' fd2
20- 40 1030 -3 -80
90
40- 60 1450 -2 -28 56
60- 80 25 70 -1 -25 25
80-100 48 90 0 0 0
100-120 33 110 11 33 33
120-140 24 130 2 48 96
140-160 16 150 3 48 144
Total N= "olkot es - bor 2 fd. fd2
170 =46 =444

2
Standard Deviation, o = CxEfd'
N

= 20 x V444 46
170 10
T70170)
l= 20 x J2.6118 - (0.2706)²
= 20x J2.6118 -0.0732
- 20 x 26386
=20 x 1.5933 lskd
Rs. 31.87Crores.