Compute the sample standard deviation given the following sample data:
$\sum x = 31,353$
$n = 100$
$\sum x^2 = 10,687,041$ | Financial Risk Manager Part 1 Quiz - LeetQuiz
Financial Risk Manager Part 1
Explanation:
Explanation
To compute the sample standard deviation, we use the formula for sample variance:
s2=(n−1)1[∑i=1nx2−nxˉ2]
Where:
∑x=31,353 (sum of all observations)
n=100 (sample size)
∑x2=10,687,041 (sum of squared observations)
Step 1: Calculate the sample mean (xˉ)
xˉ=n∑x=10031,353=313.53
Step 2: Calculate the sample variance (s2)
s2=(100−1)1[10,687,041−100×(313.53)2]
First, calculate xˉ2=(313.53)2=98,301.0609
Then, $100 \times 98,301.0609 = 9,830,106.09$
Now, $10,687,041 - 9,830,106.09 = 856,934.91$
Finally, s2=99856,934.91=8,655.9082
Step 3: Calculate the sample standard deviation (s)
s=s2=8,655.9082=93.0371≈93
Key Points:
The sample variance uses (n−1) in the denominator (Bessel's correction) for unbiased estimation
The sample standard deviation is the square root of the sample variance
The result matches option B (93)
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Compute the sample standard deviation given the following sample data: