Relations between the

Mean and the Standard

Deviation
Relation between the Mean and the Standard
Deviation
• The mean is a measure of the centrality of
a set of observations,
• The standard deviation is a measure of
their spread.
Relation between the Mean and the Standard
Deviation
• There are two general rules that establish
a relation between these measures and
the set of observations.
• The first is called Chebyshev’s Theorem,
• and the second is the Empirical Rule.
 Chebyshev’s Theorem

Establishes the following rules:

1. At least three-quarters of the observations
in a set will lie within 2 standard deviations
of the mean.
2. At least eight-ninths of the observations in
a set will lie within 3 standard deviations of
the mean.
Chebyshev’s Theorem
Chebyshev’s Theorem
Chebyshev’s Theorem
 Chebyshev’s Theorem

Check the applicability of Chebyshev’s

theorem and the empirical rule for the given
set of data. of the observations in a set will
lie within 3 standard deviations of the mean.

6/20/2018 SPECIAL TERM SY 2017-2018

 The Empirical Rule

If the distribution of the data is mound-

shaped—that is, if the histogram of the data
is more or less symmetric with a single
mode or high point—then tighter rules will
apply. This is the empirical rule:
1. Approximately 68% of the observations
will be within 1 standard deviation of the
mean.
 The Empirical Rule

2. Approximately 95% of the observations

will be within 2 standard deviations of the
mean.
3. A vast majority of the observations (all, or
almost all) will be within 3 standard
deviations of the mean.
CENTRAL LIMIT THEOREM
 CENTRAL LIMIT THEOREM

 Given the population described by any

probability distribution having mean  and
finite variance 2 , the sampling distribution of
the sample mean computed from the sample
of size n will be approximately normally
distributed with a mean equal to  and a
variance equal to 2 when the sample size is
large.
 CENTRAL LIMIT THEOREM
 The standard error of the sample mean is the
standard deviation of the distribution of the
sample means.

 If population variance is known,

 CENTRAL LIMIT THEOREM

 The formula for the standard error of

estimate is
 CENTRAL LIMIT THEOREM

 If population variance is unknown,

 The formula for the standard error of

estimate is
 CENTRAL LIMIT THEOREM
• A fair six-sided die has a mean of 3.5 and a
standard deviation of 1.7. If we roll the die 1,000
times, but create 250 data points by averaging
four rolls of the die together, what would be the
mean and standard deviation of the distribution of
averages?
 CENTRAL LIMIT THEOREM

• The mean of the distribution would remain 3.5.

The standard deviation is calculated as
 CENTRAL LIMIT THEOREM

• If we increased the number of values in the

average to 10 (resulting in 100 data points), the
mean would again be 3.5, but the standard
deviation would be
 CENTRAL LIMIT THEOREM

• The mean of a population is 12 and the standard

deviation is 3. Given that the population
comprises of 64 observations, what is the
standard error of the sample mean?