transpcr.gif (812 bytes) Dividing by n - 1

Dividing the sum of squares by (n - 1) instead of just n is one of the mysteries that often puzzles students of statistics. It is not something to worry too much about because with lots of observations it won't matter much whether you divide by (n - 1) or n. But the explanation is not that complicated and leads us to the important statistical concept of degrees of freedom.

Suppose there were five scores--five independent pieces of information. If asked to guess the scores, you would have no idea what to guess--the scores could be any value. Now suppose that you were told that the mean of the five scores equaled 10. Now would you have any idea what to guess for the five scores. Not really, the scores could still be almost anything. Finally, suppose that you were also told that four of the scores were:
1015128
Now can you guess the missing fifth score? Yes, we can determine what the last number must be to make the average of all five numbers be 10.

degrees of freedom example

In this case, 45 + X = 50 so the missing score must equal 5. In other words, once we know the mean, then only n - 1 (four in this case) of the scores are "free to vary." The last score is not free to vary because it must be exactly what is required to produce the mean. Once we know the mean, then there are only n - 1 pieces of independent information remaining in the data. Therefore, when calculating the standard deviation using the mean, the data and hence the errors and hence the squared errors only contain n - 1 independent pieces of information. The last error and its square are determined. When calculating the errors for the standard deviation we thus say that the data have only n - 1 degrees of freedom. The general rule is that each time we estimate something from the data, we must subtract one degree of freedom from n.

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© 1999, Duxbury Press.