DEPARTMENT OF TECHNICAL EDUCATION
ANDHRA PRADESH
Name : A.KRISHNA KUMAR
Designation : Sr. Lecturer
Branch : Commercial & Computer Practice
Institute : GPW ,Suryapet, Nalgonda dist.
Year/Semester : III Semester
Subject : Quantitative Techniques-1
Subject Code : CCP-303
Topic : Standard Deviation
Duration : 50 min.
Sub Topic : Calculation of Standard Deviation – Individual
Series
Teaching Aids : PPT.
CCP303.64 1
Objectives
On completion of this period, the student would be
able to:
Calculate Standard Deviation - Individual
series:
Deviations from Actual Mean
Deviations from Assumed Mean
CCP303.64 2
Recap
SD introduced by Prof. Karl Pearson in 1823.
It is the “square root of the mean of the squared
deviations from the Arithmetic Mean.”
Standard Deviation is denoted by the small Greek
letter σ (called Sigma).
Best measure of variation – based on every item of
series
CCP303.64 3
Standard Deviation –
Individual series
Different methods
By taking deviations of the items from the
Actual Mean
By taking deviations of the items from the
Assumed Mean
CCP303.64 4
I. DEVIATIONS FROM ACTUAL MEAN
STEPS:
First, calculate AM of Series
Take deviations of items from AM and denote them
‘x’
Square the deviations and total them - ∑ x2
Divide ∑ x2 by total no. of items (N) and find square
root
Apply formula (given in next slide)
CCP303.64 5
FORMULA OF SD
x 2
N
Where ∑x2 = Sum of the squares of the deviations taken
from AM
N = Number of items
CCP303.64 6
Example 1:
1) Compute Standard Deviation from the following
data of wages of 10 workers of a firm by (i)
taking deviation from actual mean
Wages (Rs): 1200, 1000, 1600, 1000, 2200,
1300, 1500, 1700, 1500, 2000.
CCP303.64 7
Solution to Ex.1:
(i) Computation of standard deviation (taking the
deviations from AM).
Wages (X) X = (X-X) x2
1200 -300 90000
1000 -500 250000
1600 +100 10000
1000 -500 250000
2200 +700 490000
1300 -200 40000
1500 0 0
1700 +200 40000
1500 0 0
2000 +500 250000
∑X =15000 ∑x=0 ∑ x2
CCP303.64 =1420000 8
Solution Contd
X = ∑X / N = 15000 / 10 = 1500
_______
σ = √ ∑ x2 / N
Where ∑ x2 = 1420000, N = 10
___________ _______
= √ 1420000 / 10 = √142000 = 376.828
CCP303.64 9
Example 2
1.Compute standard deviation from the following
data of Income of 6 employees of a firm by (i)
taking standard deviation from actual mean
Income : 42, 77, 83, 59, 68, 61
CCP303.64 10
Solution to Ex.2
Calculation of Standard Deviation – Actual Mean
Income x x2
42 -23 529
77 +12 144
83 +18 324
59 -06 36
68 +03 9
61 -04 16
∑X =390 ∑x2=1058
CCP303.64 11
Solution Contd..
x
X
390
65
N 6
x 2
1058
N 6
176.33
13.27
CCP303.64 12
2. Deviations from assumed mean
STEPS :
Take deviations from assumed mean, denote
the deviation as ‘ d ‘ and total them = ∑d.
Square these deviations and total them = ∑d2
Apply the formula.
CCP303.64 13
SD – ASSUMED MEAN - FORMULA
σ = √ ∑d2 / N – ( ∑d / N ) 2
Where ∑d2 = Total of squares of deviation from
assumed mean
∑d = Total of deviations from assumed mean.
N = Total number of items
CCP303.64 14
Example 3
Compute standard deviation from the following data of
wages of 10 workers of a firm by (ii) taking deviation
from assumed mean 1400.
Wages (Rs): 1200, 1000, 1600, 1000, 2200, 1300,
1500,1700, 1500, 2000.
CCP303.64 15
Solution to Ex. 3
Calculation of Standard Deviation – Assumed Mean
Wages (X) d = (X-A) d2
1200 -200 40000
1000 -400 160000
1600 200 40000
1000 -400 160000
2200 800 640000
1300 -100 10000
1500 100 10000
1700 300 90000
1500 100 10000
2000 600 360000
N =10 ∑d=1000 ∑ d2 =1520000
CCP303.64 16
Solution contd
d d
2
2
N N
2
1520000 1000
10 10
152000 10000 142000
376.828
CCP303.64 17
Summary
Standard Deviation - Individual Series
by taking deviations from actual mean
by taking deviations from assumed mean
The problem can be solved in any method. But the
answer will be the same
CCP303.64 18
Quiz
1. Standard deviation is a/an
a) Absolute measure
b) Relative measure
c) None of the above
CCP303.64 19
Quiz
1. What is the formula of Std. Deviation in Individual
Series (if we take deviations from Actual Mean) ?
Formula of Std. Deviation is
x 2
CCP303.64 20
Quiz
1. What is the formula of Std. Deviation in Individual
Series (if we take deviations from Assumed
Mean) ?
d d
2
2
N N
CCP303.64 21
Frequently Asked Questions
1. Calculate standard deviation from the following
25,22,28,26,35,20,22,40,2,018,19,25
( Ans 6.4)
4. Calculate the standard deviation from the
following observations
240.12, 240.13, 240.15, 240.12, 240.17, 240.15,
240.17, 240.16, 240.22, 240.21.
(Ans
0.03256)
CCP303.64 22
Assignment
1. Find standard deviation from the following :
10, 12, 14, 16, 18, 20, 22, 24, 26, 28
2. Calculate standard deviation from the following
marks of the students
Marks : 43, 48, 65, 57, 31, 60, 37, 48, 78, 58
CCP303.64 23
