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Descriptive Statistics: Measuring the Spread of Data explains standard deviation as a measure of variation in data and is part of the collection col10555 written by Barbara Illowsky and Susan Dean. Roberta Bloom made contributions that helped to clarify the standard deviation and the variance.

An important characteristic of any set of data is the variation in the data. In some data sets, the data values are concentrated closely near the mean; in other data sets, the data values are more widely spread out from the mean. The most common measure of variation, or spread, is the standard deviation.

The standard deviation is a number that measures how far data values are from their mean.

The standard deviation

  • provides a numerical measure of the overall amount of variation in a data set
  • can be used to determine whether a particular data value is close to or far from the mean

The standard deviation provides a measure of the overall variation in a data set

The standard deviation is always positive or 0. The standard deviation is small when the data are all concentrated close to the mean, exhibiting little variation or spread. The standard deviation is larger when the data values are more spread out from the mean, exhibiting more variation.

Suppose that we are studying waiting times at the checkout line for customers at supermarket A and supermarket B; the average wait time at both markets is 5 minutes. At market A, the standard deviation for the waiting time is 2 minutes; at market B the standard deviation for the waiting time is 4 minutes.

Because market B has a higher standard deviation, we know that there is more variation in the waiting times at market B. Overall, wait times at market B are more spread out from the average; wait times at market A are more concentrated near the average.

The standard deviation can be used to determine whether a data value is close to or far from the mean.

Suppose that Rosa and Binh both shop at Market A. Rosa waits for 7 minutes and Binh waits for 1 minute at the checkout counter. At market A, the mean wait time is 5 minutes and the standard deviation is 2 minutes. The standard deviation can be used to determine whether a data value is close to or far from the mean.

Rosa waits for 7 minutes:

  • 7 is 2 minutes longer than the average of 5; 2 minutes is equal to one standard deviation.
  • Rosa's wait time of 7 minutes is 2 minutes longer than the average of 5 minutes.
  • Rosa's wait time of 7 minutes is one standard deviation above the average of 5 minutes.

Binh waits for 1 minute.

  • 1 is 4 minutes less than the average of 5; 4 minutes is equal to two standard deviations.
  • Binh's wait time of 1 minute is 4 minutes less than the average of 5 minutes.
  • Binh's wait time of 1 minute is two standard deviations below the average of 5 minutes.
  • A data value that is two standard deviations from the average is just on the borderline for what many statisticians would consider to be far from the average. Considering data to be far from the mean if it is more than 2 standard deviations away is more of an approximate "rule of thumb" than a rigid rule. In general, the shape of the distribution of the data affects how much of the data is further away than 2 standard deviations. (We will learn more about this in later chapters.)

Practice Key Terms 2

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Source:  OpenStax, Collaborative statistics. OpenStax CNX. Jul 03, 2012 Download for free at http://cnx.org/content/col10522/1.40
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