Applied Statistics BS PSY 2k22 - Mashal Guluna (404429)
Assignment 01
Variance vs. Standard Deviation
Variance is the expected squared variation value of the scores from the mean value. It
measures how different (more or less than) an individual score is from the accumulated mean
score, but in squared terms. The squared value is useful in mathematical calculations but is
difficult to interpret. To tackle this shortcoming, statisticians have introduced another way of
calculating the spread of an individual score, “standard deviation.” It is identical to
variance, except that the values are enclosed within a square root. This gives a true value of
the deviation of the individual scores from the mean.
Example: Dataset of exam scores (out of 100) for 5 students:
Scores = [70, 80, 90, 60, 85]
Step 1: Mean = (70 + 80 + 90 + 60 + 85) / 5 = 385 / 5 = 77
Step 2: Variance
It is the average of the squared differences from the mean.
➔ Squared differences:
◆ (70 - 77)² = (-7)² = 49
◆ (80 - 77)² = (3)² = 9
◆ (90 - 77)² = (13)² = 169
◆ (60 - 77)² = (-17)² = 289
◆ (85 - 77)² = (8)² = 64
➔ Sum = 49 + 9 + 169 + 289 + 64 = 580
➔ Variance = Sum of squared differences / number of data points = 580 /
5 = 116
Step 3: Standard Deviation
It is the square root of the variance. √116 ≈ 10.77
While variance holds mathematical and statistical significance, i.e.; Regression Analysis,
Hypothesis Testing and Defining Probability Distributions, standard deviation serves a
purpose of ease in interpretation/communication of the scores as they have the same units as
the data.
Measurement vs. Standard Error
Measurement error is the difference between the true value (actual value) and the observed
value (the value that we measure using measuring instruments). The error results from the
faulty or inaccurate measurement process (could be human error, instrumental or
environmental error). In contrast, a standard error is how different the population mean is
likely to be from a sample mean. It tells us how much a sample mean would vary were we to
repeat the study using another sample from the same population. Standard error helps us
understand and predict how well our sample represents the whole population.
Example: Weighing Apples
Step 1: Measurement Error
We have 5 apples, each with a true weight of 100 grams. However, our kitchen scale
is slightly faulty, so the measured weights would be: Apple 1 (102 g), Apple 2 (98
g), Apple 3 (101 g), Apple 4 (99 g), Apple 5 (100 g)
Difference:
● Apple 1: 102 - 100 = +2 grams
● Apple 2: 98 - 100 = -2 grams
● Apple 3: 101 - 100 = +1 gram
● Apple 4: 99 - 100 = -1 gram
● Apple 5: 100 - 100 = 0 grams
These errors arise because the scale is not perfectly accurate.
Step 2: Standard Error
➔ Standard Deviation = √2 ≈ 1.41 grams
➔ Standard Error = S.D / √n (Where n is the sample size; 5).
Standard Error = 1.41 / √5 ≈ 0.63 grams
We obtain different sample mean calculations for 5 apple samples when repeatedly measured
because each calculation will cluster around the actual mean weight of 100 grams with a
standard deviation at 0.63 grams.