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Why describe data?
Before testing anything, we summarise a sample with a few numbers. The mean (average) tells us where the data is centred, and the standard deviation tells us how spread out it is.
The mean
For a sample of observations , the sample mean is
The standard deviation
The sample standard deviation measures the typical distance from the mean:
Worked example: Weekly sales
A shop sells 4, 6 and 8 units in three weeks. The mean is . The deviations are , so .
Mean or median?
| Measure | Sensitive to outliers? | Use when |
|---|---|---|
| Mean | Yes | Data is roughly symmetric |
| Median | No | Data is skewed (e.g. incomes) |