A contractor records the areas, in square feet, of several houses in a neighborhood to determine data about the neighborhood. Which formula should be used to calculate the standard deviation?

A. [tex]s^2=\frac{\left(x_1-\bar{x}\right)^2+\left(x_2-\bar{x}\right)^2+\ldots+\left(x_n-\bar{x}\right)^2}{n-1}[/tex]

B. [tex]s=\sqrt{\frac{\left(x_1-\bar{x}\right)^2+\left(x_2-\bar{x}\right)^2+\ldots+\left(x_n-\bar{x}\right)^2}{n-1}}[/tex]

C. [tex]\sigma^2=\frac{\left(x_1-\mu\right)^2+\left(x_2-\mu\right)^2+\ldots+\left(x_n-\mu\right)^2}{n}[/tex]

D. [tex]\sigma=\sqrt{\frac{\left(x_1-\mu\right)^2+\left(x_2-\mu\right)^2+\ldots+\left(x_n-\mu\right)^2}{n}}[/tex]



Answer :

To calculate the standard deviation of the areas of several houses in a neighborhood, we need to use the formula that measures the dispersion of a sample.

1. First, let's understand the different elements in the problem:
- [tex]\( x_i \)[/tex] represents the individual data points (areas of the houses).
- [tex]\( \bar{x} \)[/tex] represents the sample mean (average area of the houses).
- [tex]\( n \)[/tex] is the number of data points (houses measured).
- [tex]\( s \)[/tex] is the sample standard deviation.
- [tex]\( \sigma \)[/tex] is the population standard deviation.
- [tex]\( \mu \)[/tex] is the population mean.

2. The correct formula to calculate the sample standard deviation takes into account n-1 (degrees of freedom) and is expressed as:
[tex]\[ s = \sqrt{\frac{\left(x_1-\bar{x}\right)^2+\left(x_2-\bar{x}\right)^2+\ldots+\left(x_n-\bar{x}\right)^2}{n-1}} \][/tex]

This formula calculates the square root of the average of the squared deviations of each data point from the sample mean.

3. The alternative options provided involve different computations:
- [tex]\( s^2 = \frac{\left(x_1-\bar{x}\right)^2+\left(x_2-\bar{x}\right)^2+\ldots+\left(x_n-\bar{x}\right)^2}{n-1} \)[/tex]: This is the formula for the sample variance, not the standard deviation.
- [tex]\( \sigma^2 = \frac{\left(x_1-\mu\right)^2+\left(x_2-\mu\right)^2+\ldots+\left(x_n-\mu\right)^2}{n} \)[/tex]: This is the population variance, using the population mean [tex]\( \mu \)[/tex] and the total number of data points [tex]\( n \)[/tex].
- [tex]\( \sigma = \sqrt{\frac{\left(x_1-\mu\right)^2+\left(x_2-\mu\right)^2+\ldots+\left(x_n-\mu\right)^2}{n}} \)[/tex]: This is the formula for the population standard deviation, which uses the population mean [tex]\( \mu \)[/tex] and [tex]\( n \)[/tex] as the divisor.

4. Given that we are dealing with a sample of house areas to understand the neighborhood, we need the sample standard deviation formula.

Therefore, the correct formula to use in this case is:
[tex]\[ s = \sqrt{\frac{\left(x_1-\bar{x}\right)^2+\left(x_2-\bar{x}\right)^2+\ldots+\left(x_n-\bar{x}\right)^2}{n-1}} \][/tex]