What is three sigma - Definition and Meaning

Three Sigma :

The three sigma rule states that, in a normal distribution, almost all the values remain within three standard deviations of the mean. Three sigma rule is also known as empirical rule.


Formula :

Avg = Dataset/N S = Dataset-Avg; [list of values] Square = S2; [list of values] Avgnew+ = Square Variance = Avgnew/N; Sigma = √variance Threesigma = 3*sigma

Example :

The following are the points obtained by the players in a game 11,10,9,10.2,15.7. Find the variance and 3sigma. Given : Data Set = 11,10,9,10.2,15.7 N (N) = 5 To Find : Variance and Three sigma Solution : Avg = 11.18
SSquareAvgnew
-0.180.0320.0324
-1.181.3921.4248
-2.184.7526.1772
-0.980.9607.1376
4.5120.4327.5679
Variance = 5.5136 3sigma = 7.0443
Total Surface Area Tangent

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