Question

There are two ways of calculating the variance in statistics (for what I studied: test hypothesis,...

There are two ways of calculating the variance in statistics (for what I studied: test hypothesis, anova, chi square, regression):

• the sum of ((Xi-X)^2 n)/N

• the sum of Xi^2 n/N and -X^2

My question is: as they give slightly different results, do I have to use a precise formula in some exercises and the other in other specifics?

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Answer #1

There are two ways of calculating the variance of a population

If data is discrete sigma^2={1over N}sum_{i=1}^{N}(x_i-mu)^2 ,

The same can be written as

sigma^2={1over N}sum_{i=1}^{N}(x_i)^2-mu^2 which is derived from the above by expanding the summation.

Both the formullas will give you same result.

However,

The varaince of sample of size n is given by

(xi -T)2 rl

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