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Class 8 - Chebyshev's Theorem

Chebyshev's theorem provides a lower bound on the percentage of data that lies within a certain number of standard deviations from the mean, applicable to non-bell-shaped distributions. Unlike the empirical rule, which gives specific percentages for bell-shaped distributions, Chebyshev's theorem indicates that at least a certain percentage of data falls within specified standard deviations. For example, it states that at least 75% of data lies within two standard deviations, and at least 88.9% lies within three standard deviations.

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15 views5 pages

Class 8 - Chebyshev's Theorem

Chebyshev's theorem provides a lower bound on the percentage of data that lies within a certain number of standard deviations from the mean, applicable to non-bell-shaped distributions. Unlike the empirical rule, which gives specific percentages for bell-shaped distributions, Chebyshev's theorem indicates that at least a certain percentage of data falls within specified standard deviations. For example, it states that at least 75% of data lies within two standard deviations, and at least 88.9% lies within three standard deviations.

Uploaded by

AshiqKm
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Class 8 - Chebyshev's Theorem

Saturday, November 30, 2024 11:00 PM

When you first read about Chebyshev's theorem, most people


doesn't understand it and their eyes gaze over and looks very
complicated, especially with a name called Chebyshev's theorem!!

>> We will understand about Chebyshev's theorem now.

>> Before diving into it, let's recall something:

- Standard deviation of a bell shaped graph will follow the


empirical rule of:

▪ 68% of the data coming in the

▪ 95% of the data coming in the

▪ 99.7% of the data lying in the

>> This is a rule of thumb,

- Meaning the percentage is not so exact, but a general rule of thumb,


▪ Which means for a large dataset having a bell shaped graph, this
empirical rule will be generally true.

Chebyshev's Theorem

Chebyshev's theorem is a rule of thumb, that will tell you what this standard deviation
means
- For the data that is not bell shaped.

Chebyshev's theorem is not exact.


- Because it depends upon the exact shape of your distribution.

Statistics - Vol.1 Page 1


>> Chebyshev's theorem will not give us a range like that of empirical rule,

- It gives us a lower value.

- Chebyshev's theorem will tell us a minimum that applies.

- It will not tell to us like 95% of the data will fall between this and this!

- It will tell us, at least may fall between one standard deviation and so on.

▪ So, it will give us a lower boundary of what's going to be true,


 It's not going to be an exact value.

>> So, in a way, it's not going to be as useful as empirical rule, but we will still going
to use it.

Chebyshev's Theorem

>> It states that the % of the data that lies within the
standard deviations is at-least eqaul to:

, for

>> For example, for a distribution that is not bell shaped, let's look at what value of data
falls within 2 standard deviation,

- Using Chebyshev's theorem:

Statistics - Vol.1 Page 2


At-least

= = = 0.75 = 75%

>> So, Chebyshev's theorem will tell us that at least 75% of the data will lies within 2
standard deviation.

>> Similarly, when

= = 0.888 = 88.9%

>> We will look at a problem statement to understand this concept crystal clear:

In a town, the average income is $34,200, with standard


deviation of $2200. What percent of homes earn
between $29,800 and $38,600?

- We have mean here as: $34,200

- And standard deviation of: $2200

34200 - 29800 = 4400

4400/2200 = 2
So, the data lies between

38600 - 34200 = 4400


>> When we applies Chebyshev's theorem for k=2
4400/2200 = 2
We will get 75%

>> So, we can conclude that at least 75% of the homes


earn between $29,800 and $38,600

Statistics - Vol.1 Page 3


>> Let's look at another problem:

Water bills in January average $230 with a standard


deviation of $58. What percent have a bill between $56
and $404?

Mean_water_bill = $230

Std.dev. = $58

230 - 56 = 174

174/58 = 3

404 - 230 = 174

174/58 = 3

So, the bill of $56 and $404 lies between

>> When we apply Chebyshev's theorem here, we will get 88.9%

>> We can conclude that at least 88.9% of the bill lies


between $56 and $404

>> So, Chebyshev's theorem will gives us a lower limit.

- The exact value will depends upon the shape of the


distribution.

- But this theorem will gives us at least what value will


Statistics - Vol.1 Page 4
- But this theorem will gives us at least what value will
lies between a particular standard deviation.
▪ We will know what it is roughly.

Statistics - Vol.1 Page 5

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