1. Section 2.4 Measures of Variation 1 of 149 © 2012 Pearson Education, Inc. All rights reserved.

2. Section 2.4 Objectives Determine the range of a data set Determine the variance and standard deviation of a population and of a sample Use the Empirical Rule and Chebychev’s Theorem to interpret standard deviation Approximate the sample standard deviation for grouped data 2 of 149 © 2012 Pearson Education, Inc. All rights reserved.

3. Range The difference between the maximum and minimum data entries in the set. The data must be quantitative. Range = (Max. data entry) – (Min. data entry) 3 of 149 © 2012 Pearson Education, Inc. All rights reserved.

4. Example: Finding the Range A corporation hired 10 graduates. The starting salaries for each graduate are shown. Find the range of the starting salaries. Starting salaries (1000s of dollars) 41 38 39 45 47 41 44 41 37 42 4 of 149 © 2012 Pearson Education, Inc. All rights reserved.

5. Solution: Finding the Range Ordering the data helps to find the least and greatest salaries. 37 38 39 41 41 41 42 44 45 47 Range = The range of starting salaries is 10 or $10,000. minimum maximum 5 of 149 © 2012 Pearson Education, Inc. All rights reserved.

6. Deviation, Variance, and Standard Deviation Deviation The difference between the data entry, x, and the mean of the data set. Population data set: – Deviation of x = x – μ Sample data set: – Deviation of x = x – x 6 of 149 © 2012 Pearson Education, Inc. All rights reserved.

7. Example: Finding the Deviation A corporation hired 10 graduates. The starting salaries for each graduate are shown. Find the deviation of the starting salaries. Starting salaries (1000s of dollars) 41 38 39 45 47 41 44 41 37 42 Solution: First determine the mean starting salary. 7 of 149 © 2012 Pearson Education, Inc. All rights reserved.

8. Solution: Finding the Deviation Determine the deviation for each data entry. Salary ($1000s), xDeviation: x – μ 4141 – 41.5 = –0.5 3838 – 41.5 = –3.5 3939 – 41.5 = –2.5 4545 – 41.5 = 3.5 4747 – 41.5 = 5.5 4141 – 41.5 = –0.5 4444 – 41.5 = 2.5 4141 – 41.5 = –0.5 3737 – 41.5 = –4.5 4242 – 41.5 = 0.5 Σx = 415 Σ(x – μ) = 0 8 of 149 © 2012 Pearson Education, Inc. All rights reserved.

9. Deviation, Variance, and Standard Deviation Population Variance Population Standard Deviation Sum of squares, SS x 9 of 149 © 2012 Pearson Education, Inc. All rights reserved.

10. Finding the Population Variance & Standard Deviation In Words In Symbols 1.Find the mean of the population data set. 2.Find deviation of each entry. 3.Square each deviation. 4.Add to get the sum of squares. x – μ (x – μ) 2 SS x = Σ(x – μ) 2 10 of 149 © 2012 Pearson Education, Inc. All rights reserved.

11. Finding the Population Variance & Standard Deviation 5.Divide by N to get the population variance. 6.Find the square root to get the population standard deviation. In Words In Symbols 11 of 149 © 2012 Pearson Education, Inc. All rights reserved.

12. Example: Finding the Population Standard Deviation A corporation hired 10 graduates. The starting salaries for each graduate are shown. Find the population variance and standard deviation of the starting salaries. Starting salaries (1000s of dollars) 41 38 39 45 47 41 44 41 37 42 Recall μ = 41.5. 12 of 149 © 2012 Pearson Education, Inc. All rights reserved.

13. Solution: Finding the Population Standard Deviation Determine SS x N = 10 Salary, xDeviation: x – μSquares: (x – μ) 2 41 38 39 45 47 41 44 41 37 42 Σ(x – μ) = 0 SS x = 13 of 149 © 2012 Pearson Education, Inc. All rights reserved.

14. Solution: Finding the Population Standard Deviation Population Variance Population Standard Deviation The population standard deviation is about 3.0, or $3000. 14 of 149 © 2012 Pearson Education, Inc. All rights reserved.

15. Deviation, Variance, and Standard Deviation Sample Variance Sample Standard Deviation 15 of 149 © 2012 Pearson Education, Inc. All rights reserved.

16. Finding the Sample Variance & Standard Deviation In Words In Symbols 1.Find the mean of the sample data set. 2.Find deviation of each entry. 3.Square each deviation. 4.Add to get the sum of squares. 16 of 149 © 2012 Pearson Education, Inc. All rights reserved.

17. Finding the Sample Variance & Standard Deviation 5.Divide by n – 1 to get the sample variance. 6.Find the square root to get the sample standard deviation. In Words In Symbols 17 of 149 © 2012 Pearson Education, Inc. All rights reserved.

18. Example: Finding the Sample Standard Deviation The starting salaries are for the Chicago branches of a corporation. The corporation has several other branches, and you plan to use the starting salaries of the Chicago branches to estimate the starting salaries for the larger population. Find the sample standard deviation of the starting salaries. Starting salaries (1000s of dollars) 41 38 39 45 47 41 44 41 37 42 18 of 149 © 2012 Pearson Education, Inc. All rights reserved.

19. Solution: Finding the Sample Standard Deviation Determine SS x n = 10 Salary, xDeviation: x – μSquares: (x – μ) 2 41 38 39 45 47 41 44 41 37 42 Σ(x – μ) = 0 SS x = 19 of 149 © 2012 Pearson Education, Inc. All rights reserved.

20. Solution: Finding the Sample Standard Deviation Sample Variance Sample Standard Deviation The sample standard deviation is about_______________. 20 of 149 © 2012 Pearson Education, Inc. All rights reserved.

21. Example: Using Technology to Find the Standard Deviation Sample office rental rates (in dollars per square foot per year) for Miami’s central business district are shown in the table. Use a calculator or a computer to find the mean rental rate and the sample standard deviation. (Adapted from: Cushman & Wakefield Inc.) Office Rental Rates 35.0033.5037.00 23.7526.5031.25 36.5040.0032.00 39.2537.5034.75 37.7537.2536.75 27.0035.7526.00 37.0029.0040.50 24.5033.0038.00 21 of 149 © 2012 Pearson Education, Inc. All rights reserved.

22. Interpreting Standard Deviation Standard deviation is a measure of the typical amount an entry deviates from the mean. The more the entries are spread out, the greater the standard deviation. 22 of 149 © 2012 Pearson Education, Inc. All rights reserved.

23. Interpreting Standard Deviation: Empirical Rule (68 – 95 – 99.7 Rule) For data with a (symmetric) bell-shaped distribution, the standard deviation has the following characteristics: About 68% of the data lie within one standard deviation of the mean. About 95% of the data lie within two standard deviations of the mean. About 99.7% of the data lie within three standard deviations of the mean. 23 of 149 © 2012 Pearson Education, Inc. All rights reserved.

24. Interpreting Standard Deviation: Empirical Rule (68 – 95 – 99.7 Rule) 68% within 1 standard deviation 34% 99.7% within 3 standard deviations 2.35% 95% within 2 standard deviations 13.5% 24 of 149 © 2012 Pearson Education, Inc. All rights reserved.

25. Example: Using the Empirical Rule In a survey conducted by the National Center for Health Statistics, the sample mean height of women in the United States (ages 20-29) was 64.3 inches, with a sample standard deviation of 2.62 inches. Estimate the percent of the women whose heights are between 59.06 inches and 64.3 inches. 25 of 149 © 2012 Pearson Education, Inc. All rights reserved.

26. Solution: Using the Empirical Rule Because the distribution is bell-shaped, you can use the Empirical Rule. % + % = % of women are between 59.06 and 64.3 inches tall. 26 of 149 © 2012 Pearson Education, Inc. All rights reserved.

27. Standard Deviation for Grouped Data Sample standard deviation for a frequency distribution When a frequency distribution has classes, estimate the sample mean and standard deviation by using the midpoint of each class. where n= Σf (the number of entries in the data set) 27 of 149 © 2012 Pearson Education, Inc. All rights reserved.

28. Example: Finding the Standard Deviation for Grouped Data You collect a random sample of the number of children per household in a region. Find the sample mean and the sample standard deviation of the data set. Number of Children in 50 Households 13111 12210 11000 15036 30311 11601 36612 23011 41122 03024 28 of 149 © 2012 Pearson Education, Inc. All rights reserved.

29. xfxf 010 119 27 37 42 51 64 Solution: Finding the Standard Deviation for Grouped Data First construct a frequency distribution. Find the mean of the frequency distribution. Σf = Σ(xf )= The sample mean is about _____children. 29 of 149 © 2012 Pearson Education, Inc. All rights reserved.

30. Solution: Finding the Standard Deviation for Grouped Data Determine the sum of squares. xf 0100 – 1.8 = –1.8 1191 – 1.8 = –0.8 272 – 1.8 = 0.2 373 – 1.8 = 1.2 424 – 1.8 = 2.2 515 – 1.8 = 3.2 646 – 1.8 = 4.2 30 of 149 © 2012 Pearson Education, Inc. All rights reserved.

31. Solution: Finding the Standard Deviation for Grouped Data Find the sample standard deviation. The standard deviation is about _____ children. 31 of 149 © 2012 Pearson Education, Inc. All rights reserved.

32. Section 2.4 Summary Determined the range of a data set Determined the variance and standard deviation of a population and of a sample Used the Empirical Rule and Chebychev’s Theorem to interpret standard deviation Approximated the sample standard deviation for grouped data 32 of 149 © 2012 Pearson Education, Inc. All rights reserved.