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Deviation

How far one datum is from the mean


Sample Standard Deviation
A Numerical Measure that says how much variability there is in the data points
Standard Deviation Is Like An Average Of The Deviations
Standard Deviation tells us how fairly the mean represents its data points
Standard Deviation tells us how clustered the data points are around the mean

Based on Average Days to Fill Order, which Supplier do you prefer?


It is hard to know, without looking at the volatility of past delivery times.
Count
Count -1 Sample data divided by just the cou
Mean = Xbar What minus one does: 10/5 = 2, but
Days to fill order Deviation Deviation ^2 Days to fill order Deviation
Order # Banderson's, xi Xi - Xbar (Xi - Xbar)^2 Plywood & Floor Xi - Xbar
Order 1 4 10
Order 2 6 11
Order 3 12 9
Order 4 11 9
Order 5 13 10
Order 6 16 8
Order 7 5 9
Order 8 8 10
Order 9 9 10
Order 10 6 9
Order 11 8 8
Order 12 6 9
Order 13 12 6
Order 14 6 8
Order 15 13 9
Total
Sum Deviations ALWAYS = 0!
Why we have to square!!!
Sample Variance = s2
Sample Variance = s2
Sample Standard Deviation = s

Days to fill order Banderson's Days to fill order Plywood & Floor
Ave Days To Fill Order, Banderson's Ave Days To Fill Order, Banderson's
30%
Days to fill order Banderson's Days to fill order Plywood & Floor
Ave Days To Fill Order, Banderson's Ave Days To Fill Order, Banderson's
30%

25%

20%

15%

10%

5%

0%

2 4 6 8 10 12 14 16 18

ALTERNATIVE TO CALCULATE Sample SD

𝑚𝑝𝑙𝑒𝑆�=𝑠 √((∑▒ 〖� _𝑖^2−𝑛�  ̅^2 〗 )/(𝑛−1))

Count 15 15
Count -1 14 14
Mean = Xbar 9 9
Days to fill order Days to fill order
Order # Banderson's, xi xi^2 Plywood & Floor xi^2
Order 1 4 16.00 10 100.00
Order 2 6 36.00 11 121.00
Order 3 12 144.00 9 81.00
Order 4 11 121.00 9 81.00
Order 5 13 169.00 10 100.00
Order 6 16 256.00 8 64.00
Order 7 5 25.00 9 81.00
Order 8 8 64.00 10 100.00
Order 9 9 81.00 10 100.00
Order 10 6 36.00 9 81.00
Order 11 8 64.00 8 64.00
Order 12 6 36.00 9 81.00
Order 13 12 144.00 6 36.00
Order 14 6 36.00 8 64.00
Order 15 13 169.00 9 81.00

Total 1,397.00 Total 1,235.00


s 3.61 s 1.20

Alternative for variability measure called Mean Absolute Error

𝑀𝐴�= (∑▒|�_𝑖−�  ̅ | )/𝑛

Count 15 15
Mean = Xbar 9 9
Days to fill order Days to fill order
Order # Banderson's, xi ABS(Xi - Xbar) Plywood & Floor ABS(Xi - Xbar)
Order 1 4 5.00 10 1.00
Order 2 6 3.00 11 2.00
Order 3 12 3.00 9 0.00
Order 4 11 2.00 9 0.00
Order 5 13 4.00 10 1.00
Order 6 16 7.00 8 1.00
Order 7 5 4.00 9 0.00
Order 8 8 1.00 10 1.00
Order 9 9 0.00 10 1.00
Order 10 6 3.00 9 0.00
Order 11 8 1.00 8 1.00
Order 12 6 3.00 9 0.00
Order 13 12 3.00 6 3.00
Order 14 6 3.00 8 1.00
Order 15 13 4.00 9 0.00

Total 46.00 Total 12.00


s 3.07 s 0.80
3.07 0.80

Which Mean More Fairly Represents Its Data Points?

# of
# of Hours/Week Hours/Week Which Mean More Fairly Represents Its
Month worked Job 1 worked Job 2
3/16/14 55 35 # of Hours/Week worked Job 1 # of Hours/Wee
3/23/14 25 34 Ave Hours/Week Job 1 Ave Hours/Week
Which Mean More Fairly Represents Its
# of Hours/Week worked Job 1 # of Hours/Wee
Ave Hours/Week Job 1 Ave Hours/Week
3/30/14 62 36
4/6/14 15 37
4/13/14 34 43
4/20/14 19 32
4/27/14 38 33
5/4/14 29 35
5/11/14 64 36
5/18/14 31 37
5/25/14 59 35
6/1/14 12 39
6/8/14 15 32 0 10 20 30 40
6/15/14 42 31 Hours worked per week
6/22/14 25 30
Mean 35 35

Sample SD

Where are gas prices more volatile?

Gas Prices Where are gas prices more vol


Sample Gas Prices Burien Seattle
Sample 1 3.01 3.86 Gas Prices Burien Mean Gas Prices Burien Mean Gas Pric
Sample 2 2.35 2.93
Sample 3 2.47 2.42
Sample 4 2.48 1.99
Sample 5 2.28 2.51
Sample 6 2.6 2.6
Sample 7 3.31 2.52
Sample 8 2.37 2.48
Sample 9 2.52 2.46
Sample 10 2.5 2.44
Sample 11 2.37 2.42
Sample 12 3.01 3.56
Sample 13 2.36 2.39
Sample 14 2.45 2.79
1.8 2 2.2 2.4 2.6 2.8 3
Sample 15 2.38 2.58
Xbar $2.56 $2.66 Gas Price per Gallon

Sample SD
e data points
s
ata points
nd the mean

prefer?
ery times.

le data divided by just the count underestimates


minus one does: 10/5 = 2, but 10/(5-1) = 2.5
Deviation ^2
(Xi - Xbar)^2
𝑠= √((∑▒ 〖 (�_𝑖−�  ̅)^2 〗 )/(𝑛−1))

Units are squared


VAR.S (Variance for Sample)
Square root to get back to same unit
STDEV.S (Standard Deviation for Sample)
The sample SD, s, is a point estimator of the population SD, sigma σ
Which mean more fairly represents its data points?

Relative Frequency Relative Frequ


30% 45%
Relative Frequency Relative Frequ
30% 45%
40%
25%
35%
20% 30%
25%
15%
20%
10% 15%
10%
5%
5%
0% 0%

Days to fill order Banderson's Days to fill order Plywo


AVEDEV (Mean Absolute Error or Average Absolute Deviations)

ore Fairly Represents Its Data Points?


worked Job 1 # of Hours/Week worked Job 2
Job 1 Ave Hours/Week Job 2
ore Fairly Represents Its Data Points?
worked Job 1 # of Hours/Week worked Job 2
Job 1 Ave Hours/Week Job 2

30 40 50 60 70
Hours worked per week

are gas prices more volatile?


s Prices Burien Mean Gas Prices Seattle Gas Prices Seattle

2.6 2.8 3 3.2 3.4 3.6


Gas Price per Gallon
Relative Frequency
Relative Frequency

Days to fill order Plywood & Floor