Zachary is a party planner who bought 5 decorations for a birthday party. The prices of the decorations were:

$1.00 $3.00 $2.00 $6.00 $9.00
What was the standard deviation of the prices of the decorations?

If the answer is a decimal, round it to the nearest ten cents.

standard deviation (σ): $

1 answer

To calculate the standard deviation of the prices of the decorations, follow these steps:

  1. Find the mean (average) of the data. \[ \text{Mean} = \frac{\text{Sum of all values}}{\text{Number of values}} = \frac{1.00 + 3.00 + 2.00 + 6.00 + 9.00}{5} \] \[ \text{Mean} = \frac{21.00}{5} = 4.20 \]

  2. Calculate the deviations from the mean and square them. \[ (1.00 - 4.20)^2 = (-3.20)^2 = 10.24 \] \[ (3.00 - 4.20)^2 = (-1.20)^2 = 1.44 \] \[ (2.00 - 4.20)^2 = (-2.20)^2 = 4.84 \] \[ (6.00 - 4.20)^2 = (1.80)^2 = 3.24 \] \[ (9.00 - 4.20)^2 = (4.80)^2 = 23.04 \]

  3. Sum the squared deviations. \[ 10.24 + 1.44 + 4.84 + 3.24 + 23.04 = 43.80 \]

  4. Calculate the variance. The formula for the variance \( \sigma^2 \) when dealing with a sample is: \[ \text{Variance} = \frac{\text{Sum of squared deviations}}{n} \] where \( n \) is the number of data points. Here, \( n = 5 \). \[ \text{Variance} = \frac{43.80}{5} = 8.76 \]

  5. Calculate the standard deviation. \[ \sigma = \sqrt{\text{Variance}} = \sqrt{8.76} \approx 2.96 \]

Finally, round the result to the nearest ten cents: \[ \boxed{2.96} \]