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Meaning of Sheppard's correction

Shep'pard's correc'tion

Pronunciation: (shep'urdz), [key]
— Statistics. Statistics.
  1. a method of correcting the bias in standard deviations and higher moments of distributions that arises from grouping values of the variable. Also called
Random House Unabridged Dictionary, Copyright © 1997, by Random House, Inc., on Infoplease.