Sigma is a statistical measurement of variability, showing how much variation exists from a statistical average. To understand this measurement, consider the normal bell curve, which has a normal distribution. The farther to the right or left a data point is recorded on the bell curve, the higher or lower, respectively, the data is than the mean. From another point of view, low values indicate that the data points fall close to the mean; high values indicate the data is widespread and not close to the average. Let’s consider a manufacturing firm that runs a series of 10 tests to determine whether there is a variation in the quality of its products. The data points for the 10 tests are 8.4, 8.5, 9.1, 9.3, 9.4, 9.5, 9.7, 9.7, 9.9, and 9.9.
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