>Hello Sohib EditorOnline! In this journal article, we will discuss how to find the variance of a population or a sample. Variance is an important statistical measure that helps us understand how spread out the data is. By understanding variance, we can make better decisions, analyze data better, and draw more accurate conclusions. So, let’s get started!
Variance is a measure of how spread out a set of data is from its mean or average value. In other words, variance tells us how much the data points deviate from the mean value. If the variance is high, then the data is spread out more and there is more variability. If the variance is low, then the data is closer to the mean value and there is less variability.
To calculate variance, we need to know the mean value of the data set and the difference between each data point and the mean. We then square the differences, add them up, and divide by the number of data points. This gives us the variance.
Population Variance vs Sample Variance
There are two types of variance: population variance and sample variance. Population variance is used when we have data for the entire population, while sample variance is used when we only have data for a sample of the population.
The formula for population variance is:
Symbol
Description
σ²
Population variance
Σ
Summation sign (means to add up)
X
Individual data point in the population
μ
Population mean
N
Population size
The formula for sample variance is:
Symbol
Description
s²
Sample variance
Σ
Summation sign (means to add up)
x
Individual data point in the sample
ȳ
Sample mean
n
Sample size
The formulas look similar, but notice that the population variance formula uses the population mean and size, while the sample variance formula uses the sample mean and size.
Calculating Variance
Now let’s see how to calculate variance step by step.
Step 1: Find the Mean
The first step is to find the mean value of the data set. This is done by adding up all the data points and dividing by the number of data points.
Step 2: Find the Difference from the Mean
Next, we need to find the difference between each data point and the mean. This is done by subtracting the mean from each data point.
Step 3: Square the Differences
After finding the difference from the mean, we need to square each difference. This is because we want all the differences to be positive, and squaring them ensures this.
Step 4: Add Up the Squared Differences
Now we add up all the squared differences we found in step 3. This gives us the sum of squares.
Finally, we divide the sum of squares by the number of data points to get the variance.
Example Calculation
Let’s see an example of how to calculate variance. Suppose we have the following data set:
Data
4
6
8
10
12
Step 1: Find the Mean
To find the mean, we add up all the data points and divide by the number of data points:
(4 + 6 + 8 + 10 + 12) / 5 = 8
The mean is 8.
Step 2: Find the Difference from the Mean
Next, we need to find the difference between each data point and the mean:
Data
Difference from Mean
4
-4
6
-2
8
0
10
2
12
4
Step 3: Square the Differences
After finding the difference from the mean, we need to square each difference:
Data
Difference from Mean
Squared Difference
4
-4
16
6
-2
4
8
0
0
10
2
4
12
4
16
Step 4: Add Up the Squared Differences
Now we add up all the squared differences we found in step 3:
16 + 4 + 0 + 4 + 16 = 40
The sum of squares is 40.
Step 5: Divide by the Number of Data Points
Finally, we divide the sum of squares by the number of data points to get the variance:
40 / 5 = 8
The variance is 8.
FAQ
What is the difference between variance and standard deviation?
Variance and standard deviation are both measures of spread or variability in a data set. Variance is the average of the squared differences from the mean, while standard deviation is the square root of the variance. Standard deviation is often used instead of variance because it is easier to interpret since it is in the same units as the data.
What does a high variance mean?
A high variance means that the data is spread out more and there is more variability. This means that the data points are farther away from the mean value. A high variance can indicate that there is a lot of diversity in the data set or that there are outliers that are affecting the data.
What does a low variance mean?
A low variance means that the data is closer to the mean value and there is less variability. This means that the data points are closer together and there is less diversity in the data set. A low variance can indicate that the data is more consistent or that there are not many outliers affecting the data.
How can variance be useful in decision making?
Variance can be useful in decision making because it helps us understand how spread out the data is. If there is a high variance, then there is more risk and uncertainty, which may affect decision making. If there is a low variance, then there is less risk and uncertainty, which may make decision making easier. Variance can also help us identify outliers or unusual data points that may need further investigation.
What is the difference between population variance and sample variance?
Population variance is used when we have data for the entire population, while sample variance is used when we only have data for a sample of the population. Population variance is calculated using the population mean and size, while sample variance is calculated using the sample mean and size.
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