The statistic
s square (
) is
a measure on a random sample that is used to estimate the variance of the population
from which the sample is drawn.
Numerically, it is the sum of the squared
deviations around the mean of a random sample divided by the sample size minus
one.
Regardless of the size of the population, and regardless of the size
of the random sample, it can be algebriacally shown that if we repeatedly took
random samples of the same size from the same population and calculated the variance
estimate on each sample, these values would cluster around the exact value of
the population variance. In short, the statistic s squared is an unbiased estimate
of the variance of the population from which a sample is drawn.
The illustration
shows the formula for the calculation of s square and it provides an example of
its calculation. It is a useful exercise to carry out these calculations by oneself.