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Gannon University *

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220

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Economics

Date

Feb 20, 2024

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docx

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4

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Example 1: Exam Scores Scenario: In a class of 30 students, you want to understand the variability in exam scores. The scores are as follows: 75,80,85,90,95,100,60,70,85,90,92,88,78,82,92,96,85,80,88,94,98,72,68,89,91,84, 79,76,93,8775,80,85,90,95,100,60,70,85,90,92,88,78,82,92,96,85,80,88,94,98,72,6 8,89,91,84,79,76,93,87 Calculation: 1) Find the mean (average) of the scores. 2) Subtract the mean from each score to get the deviations. 3) Square each deviation. 4) Find the average of the squared deviations. 5) Take the square root of the average from step 4.
Example 2: Monthly Sales Scenario: You want to analyze the monthly sales data for a small business over the past year. The monthly sales figures (in thousands of dollars) are as follows: 32,28,35,30,33,40,38,45,42,36,31,29 Calculation: 1) Find the mean (average) of the monthly sales. 2) Subtract the mean from each monthly sales figure to get the deviations. 3) Square each deviation. 4) Find the average of the squared deviations. 5) Take the square root of the average from step 4.
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