ch3measuresofvariability

And so the average squared deviation called the

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Unformatted text preview: riginally big remains big. and So the average squared deviation , called the average variance, can describe the variability of the variance can data. data. (2.4) 2 + (−3.6) 2 + (−6.1) 2 + (−0.4) 2 + (7.7) 2 115.38 Variance = = = 23.076 5 5 Variance is a useful and often quoted quantity in Variance statistics. However, for the beginner, this quantity has certain difficulty in interpretation, as the unit of measurement (here, it is “squared thousand $”) is unusual. To go back to our familiar unit ($), we take the square root (to off-set the previous step of “squaring”), and call it the σ standard deviation, which is de...
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