
Elements of statist ics 217
=
P
n
i=1
X
i
n
−
n
X
n
=
X −X = 0 (8.12)
This difficulty can be overcome in two ways: by taking the average of the
absolute values of the devia tions or by using their squared values. It turns out
that the most useful measure has the following e xpression:
σ
2
=
P
N
i=1
(X
i
− µ)
2
N
(8.13)
This is called popul ation variance and is a measure that characterizes
very well the amount of variability of a population. The variance is usually
reported w ith two more decimal places than the data and has as measure-
ment units the square of the meas urement units of the data. This is actually
the average square distance from the mean. Note that this is