GATE (Graduate Aptitude Test in Engineering) Economics (XH-C1) Statistics, Econometrics and Mathematical Economics-Probability Theory Study Material (Page 6 of 65)
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Standard Deviation and Variance
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Standard Deviation and Variance
Variance
- Variance is another measure of dispersion.
- The term variance was first used in 1918, by R. A Fisher.
- It is known as the square of the standard deviation.
Formula
Sample Variance or
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Types of Mean
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Types of Mean
- There are different types of mean such as arithmetic mean, weighted mean, geometric mean (GM) and harmonic mean (HM) .
- If without mentioned an adjective (as mean) , it commonly refers to the arithmetic mean.
Relationship between AM, GM and HM
- AM, GM and HM satisfy these inequalities:
- Equality holds only when all the elements of the given samples are equal.
Ar…
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