How to Compute a Sample Variance

A sample variance is a measure how far a set of sample data is spread. Just as a variance describes how widely values are spread in a certain population, sample variance does the same thing, but in a smaller sample size. In statistics, since it is often impossible to find the exact variance of a population of numbers, sample variance is an accurate way to estimate the variance of a population.



The formula for sample variance is s^2 = 1/(n-1) Σ[(x_i-x ¯)^2]. (The "x_i" means x subscript i.) But for many people, deciphering this formula can be daunting. By simplifying this formula, sample variance can be found in a much easier and more manageable way.

Things You'll Need

  • Graphing calculator
  • Scratch paper
  • Pencil
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Instructions

    • 1

      Find the mean, or average, of your sample's data set. For instance, if the data set were {4, 9, 10, 22, 5}, the average would be the sum of all the numbers divided by the number of separate numbers in the given data set: (4+9+10+22+5)/5 = 10.

      This value is x ¯. The number of separate numbers in the given data set is n.

    • 2

      Subtract x ¯ from all of the values in your data set. Using the example, the data set produced from this subtraction looks like this:

      {4-10, 9-10, 10-10, 22-10, 5-10} = {-6, -1, 0, 12, -5}.

    • 3

      Find the square of each of the values in the new data set.

      {(-6)^2, (-1)^2, (0)^2, (12)^2, (-5)^2} = {36, 1, 0, 144, 25}

    • 4

      Find the sum of all of these numbers.

      36+1+0+144+25 = 206

      This value is Σ[(x_i-x ¯)^2].

    • 5

      Divide the sum from the previous set by n-1. Remember, n represents how many numbers were in the original data set. Since there were five numbers in the data set, the example should be divided by 5-1, or 4.

      206/4 = 51.5

      The above value is s^2.

    • 6

      Find the square root of the above value.

      sqrt(51.5) = 7.1764

      The above value is the sample variance.

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