Examples of Standard Deviation

Introduction:

           The definition of standard deviation is an arithmetical term that provides a good suggestion of volatility. It shows how usually values are dispersed from the average. Dispersion is the variation between the real value and the average value. The bigger variation between the final values and the standard value and the upper standard deviation will be the upper volatility. Earlier, the final prices are to the standard price, the lower the standard deviation and the lower volatility.

Example:

The heights are: 500m, 370m, 70m, 330m and 200m. Find out the Mean, the Variance, and the Standard Deviation?

Answer: 

Mean:

Mean = (500 + 370 + 70 + 330 + 200) / 5

         = 1470 / 5

Mean = 294

So the average height is 294 mm.

To estimate the Variance, get each difference, square it, and then average the result:

Variance:

          σ² = (206² + 76² + (- 224)² + 36² + (- 94)²) / 5

              = 108520 / 5

Variance = 21704.

So, the Variance is 21,704.

And the Standard Deviation is the square root of Variance, so:

Standard Deviation:

σ = √21,704

 σ = 147

And the excellent object regarding the Standard Deviation is so as to it is helpful.

So, Standard Deviation = 147.