Given observations: \( 2, 3, 5, 8, 12 \).
1. Calculate Mean: \[ {Mean} = \frac{2 + 3 + 5 + 8 + 12}{5} = 6 \]
2. Calculate Variance: \[ \sigma^2 = 13.2 \]
3. Find Median: Since the number of observations is odd, the median is the middle value: \[ {Median} = 5 \]
4. Calculate Mean Deviation about Median: \[ M = \frac{|2 - 5| + |3 - 5| + |5 - 5| + |8 - 5| + |12 - 5|}{5} = 3 \]
5. Final Calculation: \[ \sigma^2 - M = 13.2 - 3 = 10.2 \]