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Understanding Standard Deviation and Variance

Standard deviation is a measure of how spread out numbers are from the mean. It is calculated as the square root of the variance. Variance is the average of the squared differences between each number and the mean. In the example, the standard deviation of dog heights was calculated to be 147mm, showing how spread out the heights were from the average of 394mm. The standard deviation is a useful statistic for determining what values are within a "standard" range of the mean.

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Rajat Kala
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104 views21 pages

Understanding Standard Deviation and Variance

Standard deviation is a measure of how spread out numbers are from the mean. It is calculated as the square root of the variance. Variance is the average of the squared differences between each number and the mean. In the example, the standard deviation of dog heights was calculated to be 147mm, showing how spread out the heights were from the average of 394mm. The standard deviation is a useful statistic for determining what values are within a "standard" range of the mean.

Uploaded by

Rajat Kala
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Standard Deviation

Measure of how spread out numbers are.

It is the square root of the Variance.

What is the Variance?

Square of the standard deviation, ie: σ2

The average of the squared differences


from the Mean.
Workout ..
1.Work out the Mean (the simple
average of the numbers)

2. Now, for each number subtract the


Mean and then square the result (the
squared difference).

3. Then work out the average of those


squared differences. (Why Square?)
The heights (at the shoulders) are: 600mm,
470mm, 170mm, 430mm and 300mm.
Mean
Answer:
Average height is 394 mm.
Calculate each dogs difference from the Mean:

Variance: σ2
=   [2062 + 762 + (-224)2 + 362 + (-94)2 ]/5
  = 108,520/5= 21,704
Standard Déviation: σ = √21,704 = 147
SD - useful. Can show which heights are within
one Standard Deviation (147mm) of the Mean:
“Standard" way of knowing what is normal, what is extra
large or extra small.
Rottweillers are tall dogs. And Dachsunds are a bit short
... but don't tell them!
Have you ever…
• Shot a rifle?
• Played darts?

What is the point of these sports?


What makes them hard?
Have you ever…

• Shot a rifle?
• Played darts?

Jack

Jill

Who is the better shooter?


Variability
• Deviation = distance between
observations and the mean (or 8
average) 7
10
8
9

Jack

Jill
Variability
• Deviation = distance between
observations and the mean (or
average)

Jack

7
6
7
7
6 Jill
Variability
• Variance = average distance
between observations and the 8
mean squared 7
10
8
9

Jack

Jill
Variance
Variability
• Variance = average distance
between observations and the
mean squared

Jack

7
6
7
7
6 Jill
Variance
Variability
• Standard deviation =
square root of
variance
Jack

Jill

But what good is a standard deviation


Not accurate Accurate, but
Precise
Accurate but not precise
Neither accurate nor precise
Accurate & Precise
Six Sigma Focuses on the Elimination
of Variation
Off-Target Unpredictable
X
X X X
X
X XXX X X
XXX X X X
XX X X X
X X
X X X
X
On-Target X

Center
X
Process X XXX Reduce
XXX X X Spread
XX X X
A Six Sigma Process –
Predictably twice as good as what the customer
wants

LSL   USL


6
1 1 1 1 1 1

1 2 3 4 5 6 7 8 9 10 11 12
Sigma Processes At A Glance
6
3
LSL USL
5
2
4
1

16 17 18 19 20 21 22 23 24 25 26 27 28
WHAT IS TO SIX SIGMA ?
A 3 process because 3 standard deviations
fit between target and spec
Before Target
Customer

3  Specification Customers Feel the Variance,


1 Not the Average!
2 0.27% Defects
3

Customer
Target Specification

After

 6
 No Defects!




Six Sigma- Reduce Variation


Reducing Variability Is The Key To Six Sigma!

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