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When the population distribution is normal, the statistic median \(\left\{ {\left| {{{\rm{X}}_{\rm{1}}}{\rm{ - }}\widetilde {\rm{X}}} \right|{\rm{, \ldots ,}}\left| {{{\rm{X}}_{\rm{n}}}{\rm{ - }}\widetilde {\rm{X}}} \right|} \right\}{\rm{/}}{\rm{.6745}}\) can be used to estimate \({\rm{\sigma }}\). This estimator is more resistant to the effects of outliers (observations far from the bulk of the data) than is the sample standard deviation. Compute both the corresponding point estimate and s for the data of Example \({\rm{6}}{\rm{.2}}\).

Short Answer

Expert verified

The values are,

\(\begin{array}{l}{\rm{s = 1}}{\rm{.462}}\\{\rm{\hat \sigma = 1}}{\rm{.275}}\end{array}\)

Step by step solution

01

Define median

When a set of data is sorted in ascending (more common) or descending order, the median is the middle number.

02

Explanation

The data in the example is,

\(\begin{array}{l}{\rm{24}}{\rm{.46,25}}{\rm{.61,26}}{\rm{.25,26}}{\rm{.42,26}}{\rm{.66,27}}{\rm{.15,27}}{\rm{.31,27}}{\rm{.54,27}}{\rm{.74,27}}{\rm{.94,}}\\{\rm{27}}{\rm{.98,28}}{\rm{.04,28}}{\rm{.28,28}}{\rm{.49,28}}{\rm{.50,28}}{\rm{.87,29}}{\rm{.11,29}}{\rm{.13,29}}{\rm{.50,30}}{\rm{.88}}{\rm{.}}\end{array}\)

The Sample Variance\({{\rm{s}}^{\rm{2}}}\)is,

\({{\rm{s}}^{\rm{2}}}{\rm{ = }}\frac{{\rm{1}}}{{{\rm{n - 1}}}}{\rm{ \times }}{{\rm{S}}_{{\rm{xx}}}}\)

Where,

\(\begin{array}{c}{{\rm{S}}_{{\rm{xx}}}}{\rm{ = }}\sum {{{\left( {{{\rm{x}}_{\rm{i}}}{\rm{ - \bar x}}} \right)}^{\rm{2}}}} \\{\rm{ = }}\sum {{\rm{x}}_{\rm{i}}^{\rm{2}}} {\rm{ - }}\frac{{\rm{1}}}{{\rm{n}}}{\rm{ \times }}{\left( {\sum {{{\rm{x}}_{\rm{i}}}} } \right)^{\rm{2}}}\end{array}\)

The standard deviation of the sample s is,

\({\rm{s = }}\sqrt {{{\rm{s}}^{\rm{2}}}} {\rm{ = }}\sqrt {\frac{{\rm{1}}}{{{\rm{n - 1}}}}{\rm{ \times }}{{\rm{S}}_{{\rm{xx}}}}} \)

The sum of squared data is required to calculate\({{\rm{S}}_{{\rm{xx}}}}\). The data has been squared.

\(\begin{array}{l}{\rm{598}}{\rm{.2916,655}}{\rm{.8721,689}}{\rm{.0625,698}}{\rm{.0164,710}}{\rm{.7556,737}}{\rm{.1225,745}}{\rm{.8361,}}\\{\rm{758}}{\rm{.4516,769}}{\rm{.5076,780}}{\rm{.6436,782}}{\rm{.8804,786}}{\rm{.2416,799}}{\rm{.7584,811}}{\rm{.6801,}}\\{\rm{812}}{\rm{.25,833}}{\rm{.4769,847}}{\rm{.3921,848}}{\rm{.5569,870}}{\rm{.25,953}}{\rm{.5744}}\end{array}\)

and the total is,

\(\begin{array}{c}\sum {{\rm{x}}_{\rm{i}}^{\rm{2}}} {\rm{ = 598}}{\rm{.2916 + 655}}{\rm{.8721 + \ldots + 953}}{\rm{.5744}}\\{\rm{ = }}{\rm{.15489}}{\rm{.6204}}\end{array}\)

The total of the information is,

\(\sum {{{\rm{x}}_{\rm{i}}}} {\rm{ = 24}}{\rm{.46 + 25}}{\rm{.61 + \ldots + 30}}{\rm{.88 = 555}}{\rm{.86}}\)

03

Evaluating the standard deviation

As a result,\({{\rm{S}}_{{\rm{xx}}}}\),

\(\begin{array}{c}{{\rm{S}}_{{\rm{xx}}}}{\rm{ = }}\sum {{\rm{x}}_{\rm{i}}^{\rm{2}}} {\rm{ - }}\frac{{\rm{1}}}{{\rm{n}}}{\rm{ \times }}{\left( {\sum {{{\rm{x}}_{\rm{i}}}} } \right)^{\rm{2}}}\\{\rm{ = 15489}}{\rm{.6204 - }}\frac{{\rm{1}}}{{{\rm{20}}}}{\rm{ \times (555}}{\rm{.86}}{{\rm{)}}^{\rm{2}}}\\{\rm{ = 40}}{\rm{.6034}}{\rm{.}}\end{array}\)

The varianceis now,

\(\begin{array}{c}{{\rm{s}}^{\rm{2}}}{\rm{ = }}\frac{{\rm{1}}}{{{\rm{19}}}}{\rm{ \times 40}}{\rm{.6034}}\\{\rm{ = 2}}{\rm{.137}}\end{array}\)

And the standard deviation s is,

\(\begin{array}{c}{\rm{s = }}\sqrt {{{\rm{s}}^{\rm{2}}}} \\{\rm{ = }}\sqrt {{\rm{2}}{\rm{.137}}} \\{\rm{ = 1}}{\rm{.462}}{\rm{.}}\end{array}\)

To calculate the specified estimate of standard deviation, first compute the sample median, then calculate the absolute difference of data points, and divide the median by \({\rm{0}}{\rm{.6745}}\).

04

Evaluating the sample median

The Sample Median is calculated with n observations ordered from least to greatest, including repeated values. As a result, sample median is,

\(\begin{array}{l}{\rm{\tilde x = }}\left\{ {\begin{array}{*{20}{l}}{{\rm{ The only middle value if n is odd }}}\\{{\rm{ The average of the two middle values if n is even }}}\end{array}} \right.\\\left\{ {\begin{array}{*{20}{l}}{{{\left( {\frac{{{\rm{n + 1}}}}{{\rm{2}}}} \right)}^{{\rm{th}}}}}&{{\rm{, if n = odd }}}\\{{\rm{ average of }}{{\left( {\frac{{\rm{n}}}{{\rm{2}}}} \right)}^{{\rm{th}}}}{\rm{ and }}{{\left( {\frac{{\rm{n}}}{{\rm{2}}}{\rm{ + 1}}} \right)}^{{\rm{th}}}}{\rm{ ordered values }}}&{{\rm{, if n = even}}}\end{array}} \right.\end{array}\)

The data has been sorted.

\(\begin{array}{l}{\rm{24}}{\rm{.46,25}}{\rm{.61,26}}{\rm{.25,26}}{\rm{.42,26}}{\rm{.66,27}}{\rm{.15,27}}{\rm{.31,27}}{\rm{.54,27}}{\rm{.74,27}}{\rm{.94,27}}{\rm{.98,28}}{\rm{.04,}}\\{\rm{28}}{\rm{.28,28}}{\rm{.49,28}}{\rm{.5,28}}{\rm{.87,29}}{\rm{.11,29}}{\rm{.13,29}}{\rm{.5,30}}{\rm{.88}}{\rm{.}}\end{array}\)

Since this sample has an even number of observations (\({\rm{n = 20}}\)), the values of interest are,

\(\begin{array}{c}{\left( {\frac{{\rm{n}}}{{\rm{2}}}} \right)^{{\rm{th}}}}{\rm{ = }}{\left( {\frac{{{\rm{20}}}}{{\rm{2}}}} \right)^{{\rm{th}}}}\\{\rm{ = 1}}{{\rm{0}}^{{\rm{th}}}}\\{\left( {\frac{{\rm{n}}}{{\rm{2}}}{\rm{ + 1}}} \right)^{{\rm{th}}}}{\rm{ = }}{\left( {\frac{{{\rm{20}}}}{{\rm{2}}}{\rm{ + 1}}} \right)^{{\rm{th}}}}\\{\rm{ = 1}}{{\rm{1}}^{{\rm{th}}}}\end{array}\)

In the ordered sample data, the tenth and eleventh values are highlighted in red. The sample median is the average of the two figures previously given.

\(\begin{array}{c}{\rm{\tilde x = }}\frac{{{\rm{27}}{\rm{.94 + 27}}{\rm{.98}}}}{{\rm{2}}}\\{\rm{ = 27}}{\rm{.96}}\end{array}\)

The median is subtracted from the data.

\(\begin{array}{l}{\rm{ - 3}}{\rm{.5, - 2}}{\rm{.35, - 1}}{\rm{.71, - 1}}{\rm{.54, - 1}}{\rm{.3, - 0}}{\rm{.81, - 0}}{\rm{.65, - 0}}{\rm{.42, - 0}}{\rm{.22,}}\\{\rm{ - 0}}{\rm{.02,0}}{\rm{.02,0}}{\rm{.08,0}}{\rm{.32,0}}{\rm{.53,0}}{\rm{.54,0}}{\rm{.91,1}}{\rm{.15,1}}{\rm{.17,1}}{\rm{.54,2}}{\rm{.92}}\end{array}\)

05

Evaluating the estimate

This data's absolute value is,

\(\begin{array}{l}{\rm{3}}{\rm{.5,2}}{\rm{.35,1}}{\rm{.71,1}}{\rm{.54,1}}{\rm{.3,0}}{\rm{.81,0}}{\rm{.65,0}}{\rm{.42,0}}{\rm{.22,0}}{\rm{.02,0}}{\rm{.02,0}}{\rm{.08,}}\\{\rm{0}}{\rm{.32,0}}{\rm{.53,0}}{\rm{.54,0}}{\rm{.91,1}}{\rm{.15,1}}{\rm{.17,1}}{\rm{.54,2}}{\rm{.92}}\end{array}\)

Finally, the data that is utilised to calculate the median estimations\({\rm{\sigma }}\)(absolute value divided by\({\rm{0}}{\rm{.6745}}\))

\(\begin{array}{l}{\rm{5}}{\rm{.19,3}}{\rm{.48,2}}{\rm{.54,2}}{\rm{.28,1}}{\rm{.93,1}}{\rm{.20,0}}{\rm{.96,0}}{\rm{.62,0}}{\rm{.33,0}}{\rm{.03,0}}{\rm{.03,}}\\{\rm{0}}{\rm{.12,0}}{\rm{.47,0}}{\rm{.79,0}}{\rm{.80,1}}{\rm{.35,1}}{\rm{.70,1}}{\rm{.73,2}}{\rm{.28,4}}{\rm{.33}}{\rm{.}}\end{array}\)

The data has been sorted.

\(\begin{array}{l}{\rm{0}}{\rm{.03,0}}{\rm{.03,0}}{\rm{.12,0}}{\rm{.33,0}}{\rm{.47,0}}{\rm{.62,0}}{\rm{.79,0}}{\rm{.80,0}}{\rm{.96,}}\\{\rm{1}}{\rm{.20,1}}{\rm{.35,1}}{\rm{.70,1}}{\rm{.73,1}}{\rm{.93,2}}{\rm{.28,2}}{\rm{.28,2}}{\rm{.54,3}}{\rm{.48,4}}{\rm{.33,5}}{\rm{.19}}{\rm{.}}\end{array}\)

Since this sample has an even number of observations (\({\rm{n = 20}}\)), the values of interest are,

\(\begin{array}{c}{\left( {\frac{{\rm{n}}}{{\rm{2}}}} \right)^{{\rm{th}}}}{\rm{ = }}{\left( {\frac{{{\rm{20}}}}{{\rm{2}}}} \right)^{{\rm{th}}}}\\{\rm{ = 1}}{{\rm{0}}^{{\rm{th}}}}\\{\left( {\frac{{\rm{n}}}{{\rm{2}}}{\rm{ + 1}}} \right)^{{\rm{th}}}}{\rm{ = }}{\left( {\frac{{{\rm{20}}}}{{\rm{2}}}{\rm{ + 1}}} \right)^{{\rm{th}}}}\\{\rm{ = 1}}{{\rm{1}}^{{\rm{th}}}}\end{array}\)

In the ordered sample data, the tenth and eleventh values are highlighted in red. The sample median is the average of the two figures previously given.

\({\rm{ \tilde x = }}\frac{{{\rm{1}}{\rm{.2 + 1}}{\rm{.35}}}}{{\rm{2}}}{\rm{ = 1}}{\rm{.275}}{\rm{.}}\)

As a result, using the statistic median provided in the exercise, the estimate\({\rm{\sigma }}\)is,

\({\rm{\hat \sigma = 1}}{\rm{.275}}\)

It's worth noting that the sample standard deviation exceeds the estimate\({\rm{\hat \sigma }}\).

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