MGMT 1050 Study Guide - Midterm Guide: Standard Deviation, Level Of Measurement, Percentile
Document Summary
One objective of statistical inferences is to estimate the parameter from the statistic. Some deviations are mean and positive but when you add them all together it will be 0, which is why we use deviation squared to avoid the cancelling effect . We could average the absolute value of the deviations. The variance is useful when comparing two or more sets of the same type of variable. The problem of interpretation is caused by the way the variance is computed. Interpreting the standard deviation if the histogram is bell shaped, we can use the empirical rule. A more general interpretation of the standard deviation is derived from chebysheff"s theorem, which applies to all shapes of histograms. Chebysheff"s theorem applies to all shapes histograms the proportion of observations in any sample or population that lie within k standard deviations of the mean is at least.
