Step by step
The question
Question: x can be 0, 5, 10, with probabilities 0.5, 0.3, 0.2: find the standard deviation.
1 The mean
The table lists each value of x and its probability, P of x.
The mean: each x times its probability.
0 times 0.5 is 0.
5 times 0.3 is 1.5.
10 times 0.2 is 2.
0 plus 1.5 plus 2 is 3.5.
2 Distance from the mean
The variance: how far each x is from the mean, squared, times its probability, all added up.
0 minus 3.5 is −3.5.
Squared: 12.25.
Times 0.5: 6.125.
5 minus 3.5 is 1.5.
Squared: 2.25.
Times 0.3: 0.675.
10 minus 3.5 is 6.5.
Squared: 42.25.
Times 0.2: 8.45.
3 Add: the variance
6.125 plus 0.675 plus 8.45 is 15.25.
The variance, sigma squared, is 15.25.
4 Square root
The SD is the square root of the variance: about 3.9051.
Careful!
15.25 is the variance.
The SD is its square root.
5 Check
Let's check with the other formula.
Each x squared times P of x: 0 plus 7.5 plus 20 is 27.5.
Minus the mean squared: 27.5 minus 12.25 is 15.25, the variance again.
So it is right!
Let's look back.
First: the mean.
Then: distance from the mean.
Then: add: the variance.
Then: square root.
Last: check.