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Sometimes it's easier to use the variance when solving statistical problems.ġ. Variance is the square of the standard deviation. Note: why do we divide by n - 1 instead of by n when we estimate the standard deviation based on a sample? Bessel's correction states that dividing by n-1 instead of by n gives a better estimation of the standard deviation. Fortunately, the STDEV.S function in Excel can execute all these steps for you. Repeat steps 1-5 above but at step 5 divide by n-1 instead of N.ģ. The STDEV.S function uses the following formula: You only have the test scores of 5 students. For example, you're teaching a large group of students. The STDEV.S function (the S stands for Sample) in Excel estimates the standard deviation based on a sample. Fortunately, the STDEV.P function in Excel can execute all these steps for you. Divide by the number of data points (N = 5).ħ. For each number, calculate the distance to the mean.ģ. The STDEV.P function uses the following formula: The entire population consists of 5 data points. You have the test scores of all students. For example, you're teaching a group of 5 students. The STDEV.P function (the P stands for Population) in Excel calculates the standard deviation based on the entire population. As a result, the numbers have a high standard deviation. The numbers below also have a mean (average) of 10.Įxplanation: the numbers are spread out.
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As a result, the numbers have a low standard deviation.ģ. The numbers below also have a mean (average) of 10.Įxplanation: the numbers are close to the mean.