First Page Preview

First page of Sample Variance and Population Variance<subtitle>Situation 40 From the MACMTL-CPTM Situations Project</subtitle>

A student in a statistics class had observed that the definition of sample variance (s2) resembles the average of the squares of the deviations from the mean of the data set.

Yet, these squared deviations are summed and then divided by (n – 1). “Why,” asked the student, “do you not divide by n ? Is this an actual mean or some sort of 'pseudomean'?”

The concept in statistics known as variance is closely related to standard deviation: Both indicate the spread of the data distribution about the mean. In fact, the standard deviation is simply the principal square root of the variance. There are a number of reasons why the variance is calculated the way it is. As the formula for sample variance shows, the sum of the squared deviations is divided by n – 1. The following Foci are investigations of reasons why division by n – 1, rather than division by n , is necessary to calculate the sample variance. For discussion of division by n – 1 and the concept of variability, see references such as Agresti and Franklin (2007); Freund (1992); Mendenhall, Beaver, and Beaver (2005); Peck, Gould, and Miller (2013); and Shaughnessy and Chance (2005).

Licensed reuse rights only
You do not currently have access to this chapter.
Don't already have an account? Register

Purchased this content as a guest? Enter your email address to restore access.

Please enter valid email address.
Email address must be 94 characters or fewer.