Standard deviation (σ or s) quantifies how much data points vary from the average. A low SD means values cluster tightly around the mean; a high SD means they are spread widely.
**The calculation steps:**
1. Find the mean (average) of all values
2. Subtract the mean from each value (the deviation)
3. Square each deviation
4. Average the squared deviations = **variance**
5. Take the square root of the variance = **standard deviation**
**Population vs Sample:**
• **Population SD (σ)**: divide by n — use when you have data for the entire group (e.g., all students in a class)
• **Sample SD (s)**: divide by n−1 — use when your data is a sample from a larger population (e.g., a survey of 500 from millions). Dividing by n−1 (Bessel's correction) corrects for the bias in estimating the true population variance from a sample.
**Example** with dataset [2, 4, 4, 4, 5, 5, 7, 9]:
• Mean: 5
• Deviations: [−3, −1, −1, −1, 0, 0, 2, 4]
• Squared deviations: [9, 1, 1, 1, 0, 0, 4, 16]
• Variance (population): 32/8 = 4
• Standard deviation: √4 = **2**