Suppose I conduct a survey of 10 people asking whether to rank a movie as 0 to 4 stars. Allowable answers are 0, 1, 2, 3, and 4.
The mean is 2.0 stars.
How do I calculate the certainty (or uncertainty) about this 2.0 star rating? Ideally, I would like a number between 0 and 1, where 0 represents complete uncertainty and 1 represents complete certainty.
It seems clear that the case where the 10 people choose ( 2, 2, 2, 2, 2, 2, 2, 2, 2, 2 ) would be the most certain, while the case where the 10 people choose ( 0, 0, 0, 0, 0, 4, 4, 4, 4, 4 ) would be the least certain. ( 0, 1, 1, 2, 2, 2, 2, 3, 3, 4 ) would be somewhere in the middle.
The standard deviation does not have the properties requested. It is zero when everyone chooses the same answer, and can be as great as sqrt(40/9) = 2.11 when there are five 0s and five 4s.
I suggest you use 1-stdev(x)/sqrt(40/9) which will take value 1 when everyone agrees, and value 0 when there are five 0s and five 4s.
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