Must Know Mathematical Measures For Every Data Scientist

There are a large number of mathematical measures that every data scientist needs to be aware of. This article outlines the must-know statistical measures in a concise and succinct manner. Please read FinTechExplained disclaimer.

Mean

1. Sum all values.
2. Divide it by the total number of observations.

Mode

Take the most occurring value in the sample.

Median

1. Sort the numbers in ascending order.
2. Take the middle value.

Variance

1. Calculate mean.
2. Take difference between each value and the mean
3. Square this difference.
4. Sum all differences
5. Finally, divide by the total number of observations.

Variance gives us dispersion of the values around the mean.

Standard Deviation

Square root of variance.

Standard deviation gives us dispersion of the values around the mean in the same units as the values (instead of squared value as variance)

Covariance

Covariance is used to find relationship between two variables. For each variable:

1. Calculate mean.
2. Take difference between each…