Business Statistics

76 Business Statistics

In this case, the sum of the squares of the deviation is equal

to 1000. If the deviation would be taken from any other

value, say 20, then the sum of the squares of the deviations

would be greater than 1000 as shown in Table 3.10.

It is clear that when the sum of the square was taken

from the arithmetic mean, it was 1000 and when it was tak-

en from any other value, for example, 20 as in table 3.10,

it was 1500, which is greater than 1000. This result can be

generalized.

3. Simple arithmetic means may be combined to

form a composite mean. The formula for com

posite mean is

1 1 2 2

1 2

AM

k k

k

n x n