Standard Deviation

The idea of Standard deviation was first presented by karl pearson in 1893. Standard
deviation is also called the Root-Mean Square Deviation, it is defined as the square
root of the mean of the squared deviations from the actual mean.
The formula for S.D is

̅ )𝟐
∑(𝑿 − 𝑿
𝑺. 𝑫 = √
𝑵

∑ 𝑿𝟐
𝝈=√
𝑵
̅ )𝟐
Where x= 𝑿 − 𝑿𝟐 , 𝑿𝟐 = (𝑿 − 𝑿
Where 𝜎 stands for standard deviation, ∑ 𝑋2 is the sum of the square of deviations
measured from arithmetic mean, N is Number of terms.
A point of difference is that mean deviation can be calculated from mean or median or
mode but standard deviation is calculated only form mean.
Note: Deviation can be written with small x or dx.
Coefficient of Standard Deviation:
𝝈
Coefficient of Standard Deviation = ̅
𝑿
It is used to compare two series. It is relative measure of dispersion.

Coefficient of Variation or coefficient of Variability.

𝝈
Coefficient of variation = ̅ 𝑿
𝑿
𝟏𝟎𝟎

Uday N
Assistant Prof. of Commerce
Calculation of S.D
1. Individual Series
Deviations can be taken from actual Mean from the following formula is used.
From Actual Mean

∑ 𝒅𝒙𝟐
𝑺. 𝑫 = √
𝑵

Where ∑ 𝒅𝒙𝟐 is the squared deviation from actual mean; N is Number of terms.
From Assumed Mean

∑ 𝒅𝒙𝟐 ∑ 𝒅𝒙 𝟐
𝑺. 𝑫 = √ −( )
𝑵 𝑵

1. Calculate S.D by Direct and Indirect methods.

25 27 31 32 35

Solution
Direct Method (from Actual mean)
N=5
X ̅)
𝒅𝒙 = (𝑿 − 𝑿 𝒅𝒙𝟐
25 -5 25
27 -3 9
31 1 1
32 2 4
35 5 25
∑ 𝑥 = 150 ∑ 𝑑𝑥 = 0 ∑ 𝑑𝑥 2 = 64

∑ 𝑋 150
𝑋̅ = = = 30
𝑁 5

∑ 𝒅𝒙𝟐 𝟔𝟒
𝑺. 𝑫 = √ = √ = √𝟏𝟐. 𝟖 = 𝟑. 𝟓𝟕𝟖.
𝑵 𝟓

Uday N
Assistant Prof. of Commerce
Indirect or Shortcut Method (From Assumed Mean)
X 𝒅𝒙 = (𝑿 − 𝑨) 𝒅𝒙𝟐
25 -6 36
27 -4 16
31 0 0
32 1 1
35 4 16
∑ 𝑥 = 150 ∑ 𝑑𝑥 = −5 ∑ 𝑑𝑥 2 = 69

Let Assumed Mean (A) = 31

∑ 𝒅𝒙𝟐 ∑ 𝒅𝒙 𝟐
𝑺. 𝑫 = √ −( )
𝑵 𝑵

𝟔𝟗 −𝟓 𝟐
√ −( )
𝟓 𝟓

69
√ −1
5

64
√ = √12.8 = 3.578.
5

𝑺.𝑫 𝟑.𝟓𝟕𝟖
Coefficient of S.D = ̅ = = 𝟎. 𝟏𝟏𝟗
𝑿 𝟑𝟎

Uday N
Assistant Prof. of Commerce
 2. The Scores of two batsmen A and B in ten innings during a certain match are as
under.
A 16 14 28 31 35 4 5 30 48 7
B 9 15 24 26 34 45 5 31 20 40
Find out which batsmen is more consistent in scoring and who is better run-getter.
Solution:
𝑿𝑨 𝑿𝑩 𝑿𝑨 = 𝑿𝟐𝑨 𝑿𝑩 = 𝑿𝟐𝑩
(𝑿𝑨 − 𝑿̅ 𝑨) (𝑿𝑩 − 𝑿̅𝑩)
16 9 -9.4 88.63 -15.9 252.81
14 15 -11.4 129.96 -9.9 98.01
28 24 2.6 6.76 -0.9 0.81
31 26 5.6 31.36 1.1 1.21
35 34 9.6 92.16 9.1 82.81
40 45 14.6 213.16 20.1 44.01
5 5 -20.4 416.16 -19.9 396.01
30 31 4.6 21.16 6.1 37.21
48 20 22.6 510.76 -4.9 24.01
7 40 -18.4 338.56 15.1 228.01
∑ 𝑿𝑨 = 𝟐𝟓𝟒 ∑ 𝑿𝑩 = 𝟐𝟒𝟗 ∑ 𝑿𝟐𝑨 = 𝟏𝟖𝟒𝟖. 𝟒𝟎 ∑ 𝑿𝟐𝑩 = 𝟏𝟓𝟐𝟒. 𝟗𝟎

N=10
∑ 𝑋𝐴 254
𝑋̅𝐴 = = = 25.4
𝑁 10
∑ 𝑋𝐵 249
𝑋̅𝐵 = = = 24.9
𝑁 10
Computation of Coefficient of variation

∑ 𝑋𝐴2 1848.4
𝜎𝐴 = √ =√ = √184.84 = 13.596
𝑁 10

∑ 𝑋𝐵2 1524.9
𝜎𝐵 = √ =√ = √152.49 = 12.348
𝑁 10

Uday N
Assistant Prof. of Commerce
Coefficient of Variation of A
𝜎𝐴
= 𝑋 100
𝑋𝐴
13.596
= 𝑋 100
25.4
= 𝟓𝟑. 𝟓𝟐𝟕%

Coefficient of Variation of B
𝜎𝐵
= 𝑋 100
𝑋𝐵
12.34
= 𝑋 100
24.4
= 𝟒𝟗. 𝟓𝟗%

Problems to be Solved
1. Ten students of a class obtained marks in a subject out of 100 as follows:
Marks 5 10 20 25 40 42 45 48 70 80
Find Standard Deviation
2. Calculate S.D by direct and Shortcut method:
22 57 44 53 47 53

3. Calculate S.D, Coefficient of S.D and Coefficient of Variation by shortcut

method.
7 19 12 14 16 13 17 18

4. Following are the scores of two batsmen, Sachin and Sehwag in a series of
innings.
Sachin 12 115 6 73 7 19 119 36 84 29
Sehwag 47 12 76 42 4 51 37 48 13 0
Find out who is better scorer and who is more consistent.

Uday N
Assistant Prof. of Commerce
 Discrete Series
Here also the deviation can be taken from Actual or Assumed Mean.
From Actual Mean

∑ 𝒅𝒙𝟐
𝑺. 𝑫 = √
𝑵

From Assumed Mean

∑ 𝒇𝒅𝒙𝟐 ∑𝒇𝒅𝒙 𝟐
𝑺. 𝑫 = √ −( )
𝑵 𝑵

Where N is the total no. of terms ∑ 𝑓

F is the frequency of each variable
Dx is the deviation of variable from Assumed mean.

1. Calculate S.D and its coefficient using both methods.

X 10 12 14 16 18 20 22
F 3 5 9 16 8 7 2

Solution
𝑋 𝑓 𝑓𝑋 𝑑𝑥 𝑓𝑑𝑥 𝑓𝑑𝑥 2 𝑑𝑥́ = 𝑓𝑑𝑥́ 𝑓𝑑𝑥́ 2
𝑥 − 14
10 3 30 -6 -18 108 -4 -12 48
12 5 60 -4 -2 8 -2 -10 20
14 9 126 -2 -18 36 0 0 0
16 16 246 0 0 0 2 32 64
18 8 144 2 16 32 4 32 128
20 7 140 4 28 112 6 42 252
22 2 44 6 12 72 8 16 128
N=5 ∑ 𝒇𝒙 = ∑ 𝒇𝒅𝒙 = 𝟎 ∑ 𝒇𝒅𝒙𝟐 = ∑ 𝒇𝒅𝒙́ = ∑ 𝒇𝒅𝒙́ 𝟐 =
𝟖𝟎𝟎 𝟒𝟒𝟎 𝟏𝟎𝟎 𝟔𝟒𝟎

Uday N
Assistant Prof. of Commerce
Method
∑ 𝑓𝑋 800
𝑋̅ = = = 16
𝑁 50

∑ 𝒅𝒇𝒙𝟐 𝟒𝟒𝟎
𝑺. 𝑫 = √ =√ = 𝟐. 𝟗𝟕
𝑵 𝟓

Method II

𝟐
∑ 𝒅𝒙𝟐 ∑ 𝒅𝒙́
𝑺. 𝑫 = √ −( )
𝑵 𝑵

𝟔𝟒𝟎 𝟏𝟎𝟎 𝟐 𝟔𝟒𝟎

=√ −( ) =√ −𝟒
𝟓𝟎 𝟓𝟎 𝟓𝟎

𝟒𝟒𝟎
=√ = √𝟖. 𝟖 = 𝟐. 𝟗𝟕
𝟓𝟎

𝑺.𝑫 𝟐.𝟗𝟕
Coefficient of S.D = ̅
= = 𝟎. 𝟏𝟖𝟔
𝑿 𝟏𝟔

Problems to be solved.
1. Compute 𝑋̿ , S.D, coefficient of S.D and coefficient of Variation for the following
data using 1) Actual Mean 2) Assumed mean
X 15 25 35 45 55 65
F 2 4 8 2 12 4

2. The following table shows the daily pocket expenses of 48 students of college in
rupees. Calculate mean deviation, standard deviation and coefficient of variation.
Dailt pocket Expense 6 7 8 9 10 11 12
No. of Students 3 6 9 13 8 5 4

3. Calculate S.D and C.V using Step-deviation method.

X 30 40 5 60 70 80 90 100
f 5 5 8 2 10 7 2 1

Uday N
Assistant Prof. of Commerce
Continuous Series
Here we take the deviations from actual mean or assumed mean as desired from the
Mid-point of class intervals.
From Actual Mean

∑ 𝒅𝒙𝟐
𝑺. 𝑫 = √
𝑵

From Assumed Mean

∑ 𝒇𝒅𝒙𝟐 ∑𝒇𝒅𝒙 𝟐
𝑺. 𝑫 = √ −( )
𝑵 𝑵

Step Deviation Method

𝟐
∑ 𝒅𝒙́ 𝟐 ∑ 𝒅𝒙́
𝑺. 𝑫 = √ −( )
𝑵 𝑵

Where 𝑑𝑥́ is the step deviation such that

𝑑𝑥
𝑑𝑥́ =
𝑖
Here i is the class interval

1. Compute standard deviation for the following data by 1) taking actual mean
2) taking assumed mean 3) step deviation method
X 0-10 10-20 20-30 30-40 40-50 50-60 60-70
f 1 4 17 45 26 5 2

Uday N
Assistant Prof. of Commerce
Solution
1) Taking Actual Mean
C.I M.P f fm 𝑑𝑥 = 𝑓𝑑𝑥 𝑓𝑑𝑥 2
(m) (𝑚 − 𝑋̅

0-10 5 1 5 -31.4 -31.4 985.96

10-20 15 4 60 -21.4 -85.6 1831.84
20-30 25 17 425 -11.4 -193.8 2209.32
30-40 35 45 1575 -1.4 -63.0 88.20
40-50 45 26 1170 -8.6 223.0 1922.96
50-60 55 5 275 18.6 93.0 1729.80
60-70 65 2 100 28.6 57.2 1635.92
𝑁 = 100 ∑ 𝑓𝑥 = 3640 ∑ 𝑓𝑑𝑥 = 0 ∑ 𝑓𝑑𝑥 2 = 10404

∑ 𝑓𝑚 == 3640
N=100
∑ 𝑓𝑚 3640
𝑋̅ = = = 36.4
𝑁 100

∑ 𝒅𝒇𝒙𝟐 𝟏𝟎𝟒𝟎𝟒
𝑺. 𝑫 = √ =√ = √𝟏𝟎𝟒. 𝟎𝟒 = 𝟏𝟎. 𝟐
𝑵 𝟏𝟎𝟎

2) Assumed Mean
C.I M.P (m) f 𝑑𝑥 = 𝑓𝑑𝑥 𝑓𝑑𝑥 2
𝑚−𝐴

0-10 5 1 -30 -30 900

10-20 15 4 -20 -80 1600
20-30 25 17 -10 -170 1700
30-40 35 45 0 0 0
40-50 45 26 10 260 2600
50-60 55 5 20 100 2000
60-70 65 2 30 60 1800
𝑁 = 100 ∑ 𝑓𝑑𝑥 = 140 ∑ 𝑓𝑑𝑥 2 = 10600

Uday N
Assistant Prof. of Commerce
∑ 𝑓𝑑𝑥 2 = 10600
∑ 𝑓𝑑𝑥 = 140

∑ 𝒇𝒅𝒙𝟐 ∑𝒇𝒅𝒙 𝟐
𝑺. 𝑫 = √ −( )
𝑵 𝑵

𝟏𝟎𝟔𝟎𝟎 𝟏𝟒𝟎 𝟐
=√ −( )
𝟏𝟎𝟎 𝟏𝟎𝟎

𝟏𝟎𝟔𝟎𝟎 𝟏𝟗𝟔
=√ −( )
𝟏𝟎𝟎 𝟏𝟎𝟎

𝟏𝟎𝟔𝟎𝟎 − 𝟏𝟗𝟔 𝟏𝟎𝟒𝟎𝟒

=√ =√ = √𝟏𝟎𝟒. 𝟎𝟒 = 𝟏𝟎. 𝟐
𝟏𝟎𝟎 𝟏𝟎𝟎

Uday N
Assistant Prof. of Commerce
 3) Step deviation
C.I M.P (m) f 𝑑𝑥 𝑓𝑑𝑥́ 𝑓𝑑𝑥́ 2
𝑑𝑥 =
10

0-10 5 1 -3 -3 9
10-20 15 4 -2 -8 16
20-30 25 17 -1 -17 17
30-40 35 45 0 0 0
40-50 45 26 1 26 26
50-60 55 5 2 10 20
60-70 65 2 3 6 18
𝑁 = 100 ∑ 𝑓𝑑𝑥́ = 14 ∑ 𝑓𝑑𝑥́ 2 = 106

𝑑𝑥
However, to minimize the calculations we take 𝑑𝑥́ from 𝑑𝑥 i.e. 𝑑𝑥́ = where 𝑖 = 10
10
and then applying the formula, we get S.D.

∑ 𝒇𝒅𝒙́ 𝟐 ∑𝒇𝒅𝒙́ 𝟐
𝑺. 𝑫. = √ −( ) 𝑿𝒊
𝑵 𝑵

𝟏𝟎𝟔 𝟏𝟒 𝟐
=√ −( ) 𝑿 𝟏𝟎
𝟏𝟎𝟎 𝟏𝟎𝟎

= √𝟏. 𝟎𝟔 − 𝟎. 𝟎𝟏𝟗𝟔 𝑿 𝟏𝟎

= √𝟏. 𝟎𝟒𝟎𝟒 𝑿 𝟏𝟎
= 𝟏. 𝟎𝟐 𝑿 𝟏𝟎 = 𝟏𝟎. 𝟐

Problems to be solved:
1. Calculate standard Deviation of the marks obtained by 10 students in an
examination:
Marks 0-10 10-20 20-30 30-40 40-50
Students 12 21 23 34 10

Uday N
Assistant Prof. of Commerce
 VARIANCE
Variance is the square of standard deviation. If a phenomenon s affected by a number
of variables, variance helps in isolating of effects of different factors. This term was
used by R.A Fisher in 1913 for the first time
𝒗𝒂𝒓𝒊𝒂𝒏𝒄𝒆 = (𝑺. 𝑫. )𝟐 = (𝝈)𝟐

𝑺. 𝑫. 𝒐𝒓 𝝈 = √𝒗𝒂𝒓𝒊𝒂𝒏𝒄𝒆
The less the variance the less the variability of the series.
All the formula used for S.D. in case of different types of series are used here without
square root sign.
Coefficient of Variation
𝑺𝒕𝒂𝒏𝒅𝒂𝒓𝒅 𝑫𝒆𝒗𝒊𝒂𝒕𝒊𝒐𝒏 𝝈
𝑪. 𝑽 = 𝑿 𝟏𝟎𝟎 = ̅ 𝑿 𝟏𝟎𝟎
𝑨𝒓𝒊𝒕𝒉𝒎𝒂𝒕𝒊𝒄 𝑴𝒆𝒂𝒏 𝑿

1. Calculate the standard deviation and variance, when daily sale of sugar Is as
follows:
Days Monday Tuesday Wednesday Thursday Friday Saturday
Sale (in kgs) 75 120 12 50 70.5 140.5

Solution:
Day Sale (X) 𝑿𝟐
Monday 75 5625
Tuesday 120 14,400
Wednesday 12 144
Thursday 50 2,500
Friday 70.5 4,970.25
Saturday 140.5 19,740.25
47,379.50

∑ 𝒙𝟐 ∑𝒙 𝟐
𝑺. 𝑫 = √ −( )
𝑵 𝑵

Uday N
Assistant Prof. of Commerce
 𝟒𝟕𝟑𝟕𝟗. 𝟓 𝟒𝟔𝟖 𝟐
=√ −( )
𝟔 𝟔

𝑺. 𝑫 = √𝟕𝟖𝟗𝟔. 𝟔𝟖𝟑 − 𝟔𝟎𝟖𝟒

= √𝟏𝟖𝟏𝟐. 𝟓𝟖𝟑 = 𝟒𝟐. 𝟓𝟕𝟒

𝒗𝒂𝒓𝒊𝒂𝒏𝒄𝒆 = (𝑺. 𝑫. )𝟐 = 𝟏𝟖𝟏𝟐. 𝟓𝟖

2. A sample of 50 cars each of two marks X and Y is taken and average running
life in years is recorded:

Number of Cars
Life (in years)
Make-X Make-Y
0-5 8 6
5-10 12 1
10-15 17 20
15-20 10 12
2-25 3 2

i. Which of thsese two makes gives higher average life?

ii. Which of these makes shows greater consistency?

CI 𝑚 𝑓 (𝑥 ) 𝑓 (𝑦) 𝑑𝑥 𝑓 (𝑥 )𝑑𝑥 𝑓 (𝑦)𝑑𝑥 𝑓 (𝑥 )𝑑𝑥 2 𝑓 (𝑦)𝑑𝑥 2

0-5 2.5 8 6 -2 -16 -12 32 24
5-10 7.5 12 10 -1 -12 -10 12 10
10-15 12.5 17 20 0 0 0 0 0
15-20 17.5 10 12 1 10 12 10 12
20-25 22.5 3 2 2 6 4 12 8
50 50 -12 -6 56 54

Uday N
Assistant Prof. of Commerce
 ∑ 𝒙𝟐 ∑𝒙 𝟐
𝑺. 𝑫 = √ −( )
𝑵 𝑵
−𝟏𝟐
̅ 𝑿 = 𝟏𝟐. 𝟓 +
𝑿 𝑿 𝟓 = 𝟏𝟐. 𝟓 − 𝟏. 𝟐 = 𝟏𝟏. 𝟑
𝟓𝟎

−𝟔
̅ 𝒀 = 𝟏𝟐. 𝟓 +
𝑿 𝑿 𝟓 = 𝟏𝟐. 𝟓 − 𝟎. 𝟔 = 𝟏𝟏. 𝟗
𝟓𝟎

𝟓𝟔 −𝟏𝟐 𝟐
𝝈𝒙 = √ −( ) 𝑿𝟓
𝟓𝟎 𝟓𝟎

= √𝟏. 𝟏𝟐 − 𝟎. 𝟔 𝑿 𝟓 = 𝟓. 𝟏𝟒𝟕

𝟓𝟒 −𝟔 𝟐
𝝈𝒚 = √ − ( ) 𝑿 𝟓
𝟓𝟎 𝟓𝟎

= √𝟏. 𝟎𝟖 − 𝟎. 𝟏 𝑿 𝟓 = 𝟓. 𝟏𝟕𝟐

5.174
𝐶𝑉 (𝑥 ) = 𝑋100 = 0.455
11.3
5.172
𝐶𝑉 (𝑦) = 𝑋100 = 0.434
11.9
Make X gives higher Average life.
Make Y shows more consisteny.

Uday N
Assistant Prof. of Commerce
To be Solved:
Wages of workers of two shifts in a factory is given below
Wages 50-100 100-150 150-200 200-250 250-300 300-350
Shift A 3 8 24 63 102 50
Shift B 32 44 62 41 37 34
a. Which shift worker earn better
b. Which shift worker are consistent in their earnings.

On the basis of the following data tell which team either A team or B team is more
consistent?
No. of scores 0 1 2 3 4
Matches played by A 27 9 8 5 1
Matches played by B 1 5 8 9 27

Uday N
Assistant Prof. of Commerce