Statistics
We extend Grade 10 descriptive statistics to grouped data, variance and standard deviation, and regression (scatter plots and lines of best fit).
9.1 Standard Deviation & Regression
- Calculate variance and standard deviation for ungrouped data
- Interpret standard deviation as a measure of spread
- Draw scatter plots and find lines of best fit; calculate the linear regression equation
- Interpret correlation coefficient
Real-World Connection
Standard deviation is used by financial analysts to measure investment risk. A low standard deviation means returns are predictable; high standard deviation means volatile returns. Insurance companies use regression to predict claim costs from historical data.
Variance
Average squared deviation from the mean
Standard Deviation
Root mean square deviation; same units as data
Definition
Linear Regression
The line of best fit minimises the sum of squared vertical distances from the data points to the line. Calculate using: and .
Definition
Correlation Coefficient
Pearson's measures the strength and direction of linear association: . close to 1 = strong linear relationship; close to 0 = weak or no linear relationship.
ℹ️ Note
Standard deviation measures spread AROUND the mean. If is small, data is clustered close to the mean. If is large, data is widely spread.
Worked Example
Calculate standard deviation
Problem
CAPS Cognitive Level Distribution