Variance and Standard Deviation
One measure of  spread  based   on  the mean    is  the variance    .   By  definition, the variance    is  the average
squared deviation   from    the mean.   That    is, it  is  a   measure of  spread  because the more    distant a   value   is
from    the mean,   the larger  will    be  the square  of  the difference  between it  and the mean.
Symbolically,   the variance    is  defined by
Note    that    we  average by  dividing    by  n – 1   rather  than    n as    you might   expect. This    is  because there   are
only    n – 1   independent datapoints, not n   ,   if  you know        .   That    is, if  you know    n – 1   of  the values  and you
also    know        ,   then    the n   th  datapoint   is  determined.
One problem using   the variance    as  a   measure of  spread  is  that    the units   for the variance    won’t   match
the units   of  the original    data    because each    difference  is  squared.    For example,    if  you find    the variance    of  a
set of  measurements    made    in  inches, the variance    will    be  in  square  inches. To  correct this,   we  often   take
the square  root    of  the variance    as  our measure of  spread.
The square  root    of  the variance    is  known   as  the standard    deviation   .   Symbolically,
As  discussed   earlier,    it  is  common  to  leave   off the indices and write:In  practice,   you will    rarely  have    to  do  this    calculation by  hand    because it  is  one of  the values  returned
when    you use you calculator  to  do  1-Var   Stats on    a   list    (it’s   the Sx near the bottom  of  the first   screen).
Calculator  Tip: When   you use 1-Var Stats ,   the calculator  will,   in  addition    to  Sx  ,   return  σ x ,   whichis  the standard    deviation   of  a   distribution.   Its formal  definition  is      .   Note    that    thisassumes you know    μ   ,   the population  mean,   which   you rarely  do  in  practice    unless  you are dealing
with    a   probability distribution    (see    Chapter 9   ).  Most    of  the time    in  statistics, you are dealing with
sample  data    and not a   distribution.   Thus,   with    the exception   of  the type    of  probability material    found   in
Chapters    9 and    10     ,   you should  use only    s and   not σ.The definition  of  standard    deviation has   three   useful  qualities   when    it  comes   to  describing  the spread
of  a   distribution:
•           It  is  independent of  the mean    .   Because it  depends on  how far datapoints  are from    the mean,   it  doesn’t
matter  where   the mean    is.
