Page 162 - Probability Demystified
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CHAPTER 9 The Normal Distribution                                           151

                     SOLUTION:

                     Since the largest data value is 40 and the smallest data value is 16, the range is
                     40   16 ¼ 24.

                        Another measure that is also used as a measure of variability for individual
                     data values is called the standard deviation. This measure was also used in
                     Chapter 7.
                        The steps for computing the standard deviation for individual data
                     values are

                        Step 1: Find the mean.
                        Step 2: Subtract the mean from each value and square the differences.
                        Step 3: Find the sum of the squares.
                        Step 4: Divide the sum by the number of data values minus one.
                        Step 5: Take the square root of the answer.


                     EXAMPLE: Find the standard deviation for 32, 18, 15, 24, and 11.

                     SOLUTION:

                                               32 þ 18 þ 15 þ 24 þ 11   100
                        Step 1: Find the mean:                        ¼     ¼ 20
                                                          5              5
                        Step 2: Subtract the mean from each value and square the differences:

                                                      2
                                   32   20 ¼ 12     12 ¼ 144
                                                      2
                                   18   20 ¼ 2    ð 2Þ ¼ 4
                                                      2
                                   15   20 ¼ 5    ð 5Þ ¼ 25
                                                      2
                                   24   20 ¼ 4     ð4Þ ¼ 16
                                                      2
                                   11   20 ¼ 9    ð 9Þ ¼ 81
                        Step 3: Find the sum of the squares:
                                144 þ 4 þ 25 þ 16 þ 81 ¼ 270
                        Step 4: Divide 270 by 5   1 or 4: 270   4 ¼ 67.5
                                                                  p ffiffiffiffiffiffiffiffiffi
                        Step 5: Take the square root of the answer  67:5 ¼ 8:22 (rounded)
                        The standard deviation is 8.22.


                        Recall from Chapter 7 that most data values fall within 2 standard
                     deviations of the mean. In this case, 20   2 (8.22) is 3.56 < most
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