PRESENTATION ON

STANDARD DEVIATION & VARIANCE

 WHAT IS STANDARD DEVIATION ?
• It measures the dispersion of data.
• It shows the average distance of each point from the mean.
• It is also called as root mean square deviation.
• It is denoted by a Greek letter σ(read as sigma).
 FORMULA OF S.D.()

where, = given values

= average of given values
N = number of given values
 CALCULATIONS OF STANDARD
DEVIATIONS
• Individual Series
• Actual mean method
• Assumed mean method
• Method based on actual data
• Discrete Series
• Actual mean method
• Assumed mean method
• Step deviation method
• Continuous Series
• Variance
 1. INDIVIDUAL SERIES
(a) ACTUAL MEAN METHOD
• When deviations are taken from actual mean, this method/formula is used:-
 (b) ASSUMED MEAN METHOD
• When actual mean is not a whole number, we use assumed mean method
or short-cut method.
• When deviations are taken from assumed mean, this formula is used:-

• Where, d=X-A
(c) METHOD BASED ON ACTUAL DATA

• When number of observations are few, S.D. can be calculated by using

actual data.
 2. DISCRETE SERIES
(a) ACTUAL MEAN METHOD

• This method is rarely used.

 (b)ASSUMED MEAN METHOD

• Where d=X-A
 (c) STEP DEVIATION METHOD

• Where, i = common factor

 3. CONTINUOUS SERIES
• In this series, classes are represented by their mid-values.

• Where, i = common factor, m = mid value of the class

 4. VARIANCE
• Variance is the square of the Standard Deviation.
• Variance =
MERITS OF STANDARD DEVIATION
• Most widely used
• Based on all observations
 DEMERITS OF STANDARD
DEVIATIONS
• Difficult to calculate/understand
• Affected by extreme values
THANK YOU !!
PRESENTED BY
JAGDIP KAUR & JASPREET KAUR
(MBA 1st year)