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Measure


of
Dispersio
n
Definition of Measure of Dispersion


In statistics, dispersion (also called
variability, scatter, or spread) is the extent
to which a distribution is stretched or
squeezed. Common
examples of measures of statistical
dispersion are the variance, standard
deviation, and interquartile range.
Example
 Centre: Same

Variation: Different

Year 2000: Close

Dispersion Year 2015:

Wide Dispersion

Better Quality Data: Data


of Year 2000
Why Measure of Dispersion

Serve as a basis for the To compare the variability


control of the of two or more series
variability
Why Measure of Dispersion

Reliabl
e

Determine the reliability of Facilitate the use of other


an average statistical measures.
Characteristics of an Ideal
Measure of Dispersion

 It should be rigidly defined

 It should be easy to understand and calculate.

 Must be based on all


observations of the
Characteristics of an Ideal
Measure of Dispersion

 Must be easily subjected to further mathematical
operations
 It should not be unduly affected by the extreme
values.

 Must be least affected by the sampling


fluctuation.
Types of Measures of
Dispersion

Classification of

Measures of dispersion
in Statistics

Measures
of
Dispersio
n

Algebraic Graphical

Absolute Relative
Algebraic Measure of Dispersion


× Mathematical way to calculate the
measure of dispersion.

Example: Calculation of Standard Deviation


or Co-efficient of Variance by using numbers
and formulas.
Characteristics of Algebraic
Measure of Dispersion

• Mathematical Way

• Algebraic Variables are used

• Numerical Figures are used here

• Formulas & Equations are used


Graphical Measure of Dispersion


× The way to calculate the measure
of dispersion by figures and
graphs.

Example: Calculation of Dispersion among


the heights of the students of a class from
the average height using a graph.
Characteristics of Graphical
Measure of Dispersion

• It is a visual way of measuring dispersion

• Graphs, figures are used

• Sometimes, it cannot give the actual result

• It helps the reader to have an idea about the


dispersion practically at a glance
Absolute Measure of
Dispersion

Absolute Measure of Dispersion gives an idea about the
amount of dispersion/ spread in a set of observations. These
quantities measures the dispersion in the same units as the
units of original data. Absolute measures cannot be used to
compare the variation of two or more series/ data set.
Classification of

Algebraic Measure of
Dispersion
Absolute Measure of
Dispersion

Absolute Measure of Dispersion gives an idea about the
amount of dispersion/ spread in a set of observations. These
quantities measures the dispersion in the same units as the
units of original data. Absolute measures cannot be used to
compare the variation of two or more series/ data set.
Relative Measure of Dispersion

These measures are a sort of ratio and are called coefficients.
Each absolute measure of dispersion can be converted into
its relative measure.

It can be used to compare two or more data sets


Difference Between Absolute and Relative Measure of
Dispersion
Absolute Measure Relative Measure


1

It has the variable unit It has no unit

It is not expressed in terms of percentage It is expressed in terms of percentage

3
These measure are calculated absolute
This is calculated from original data
measures
Absolute Measure Relative Measures

No use of ratio Use of ratio

5
These measure cannot be used to compare the These measure can be used to compare the
variation of two or more series variation of two or more series.

6
There is no change in variables and with the There is changes in variables with relative
absolute measures. measures.

Absolute
measures of
Dispersion
Classification of Absolute
measure

Range

Mean Deviation

Quartile Deviation Standard Deviation



Range
Range

The difference between the maximum and


minimum observations in the data set.

R= H-
L
5, 10 , 15 , 20, 7, 9, 12 , 17 , 13 , 6 , 10 ,
11
, 17 , 16

Range = H- L
= 20- 5 = 15
Merits and Demerits of Range

Simple and easy to  Gives a rough answer and is not based


on all observation
understand
Changes from
one sample to the next in population

Cannot be calculated in open ended distributions


Gives a quick answer

Affected by sampling fluctuations



Mean deviation
Mean deviation

The average of the absolute values of


deviation from the mean(median or mode)
is called mean deviation.

𝒇| 𝒙− 𝒙|
=
𝑵
Merits of Mean deviation


Can be Is not Used to
Simplifies calculated by
affected by make
calculations mean, median
and mode extreme healthy
measures comparisons
Demerits of Mean Deviation


Mathematicall
y illogical to Not suitable
assume all Not for comparing
negatives as reliable series
positives


Quartile
Deviation
Quartile Deviation

The half distance


between 75 th 
percentile i.e. 3rd
quartile (Q 1 ) and 25 th
percentile i.e. 1st
quartile (Q 3 ) is
Quartile deviation or
Interquartile range.

Q.D = Q3 –𝟐 Q1
Merits of Quartile Deviation

Has better result than



range mode.

Is not affected by
extreme items
Demerits of Quartile Deviation

• It is completely dependent on the


central items.

• All the items of the frequency


distribution are not given equal
importance in finding the values
of Q1 and Q3

Because it does not take into




Standard
Deviation
Standard Deviation


Standard deviation is calculated as the
square root of average of squared
deviations taken from actual mean.

It is also called root mean


square deviation.
𝟐
=√ 𝒙−𝒙
𝒏
99.7%

95.4%
68.2%
Merits of standard deviation


It takes into account all the items and is
capable of future algebraic treatment and
statistical analysis.

It is possible to calculate
standard deviation for two
or more
series
This measure is most suitable for making
comparisons among two or more series about
variability.
Demerits of Standard Deviation

It is 
difficult to
compute. It assigns
more weights
to extreme
items and less
weights to
items that are
nearer to
mean.

Classifications of
Relative Measures of
Dispersion
Chart of classification


Relative
Measure

Coefficient of Coefficient of
Coefficient of Quartile Mean Coefficient of
Range Deviation Deviation Variation
Coefficient
 of
Rang
e
Coefficient of Range


The measure of the distribution based on range
is the coefficient of range also known as range
coefficient of dispersion.

Formula:
𝑅𝑎𝑛𝑔𝑒
Coefficient of Range=
𝐻𝑔𝑖ℎ𝑒𝑠𝑡𝑉𝑎𝑢𝑙𝑒 + 𝐿𝑜𝑤𝑒𝑠𝑡 𝑣𝑢𝑎𝑒𝑙
× 100
Coefficient

of
Quartile
Deviation
Coefficient of Quartile Deviation


A relative measure of dispersion based on the
quartile deviation is called the coefficient of
quartile deviation.
Formula:

𝑛𝑜 𝑖 𝑡𝑎 𝑖 𝑣𝑒𝐷 𝑒 𝑙 𝑖 𝑡 𝑟𝑎𝑢𝑄
Coefficient of Quartile
× 100 Deviation = 𝑀𝑒𝑑
𝑎𝑛𝑖

Q3 – Q1
=Q 3 + Q1
× 100 [By Simplification]
Merits & Demerits of Coefficient of Quartile
Deviation

Merits  Demerits
1. Easily understood  Sampling fluctuation

2. Not much Mathematical  Ignorance of last 25%


Difficulties of data sets.

3. Better Result than


 Values being irregular
Coefficient of Range
Coefficient
of
Mean
Deviation
Coefficient of Mean Deviation


The relative measure of dispersion we get by dividing
Mean Deviation by Mean or Median, is called
Coefficient of Mean Deviation.

Formula:
𝑛𝑜𝑀
𝑖 𝑒𝑡𝑎𝑛𝑖𝑣𝑒
𝐷
Coefficient of MD= 𝑀𝑒𝑑𝑎
𝑖𝑛𝑜𝑟𝑀𝑒𝑎𝑛
× 100
Merits & Demerits of Coefficient of Mean
Deviation

Merits  Demerits
1. Better Result than Range   Fractional
& Quartile Coefficient. Average.

2. Least sampling fluctuation.


  Cannot be
3. Rigidly defined. used for
sociological
studies
Coefficient

of
Variation
Coefficient of Variation


Coefficient of Variation is a measure of spread
that describes the amount of variability relative to
the mean.

Formula:
𝑛𝑜𝑖 𝑡𝑎𝑖𝑑
𝑣𝑒
𝑟𝐷
𝑎
𝑑
𝑛𝑆
𝑡
Coefficient of × 100
Variation =
𝑀 𝑒𝑎𝑛
Merits & Demerits of Coefficient of Variation

Merits  Demerits
1. Best one  It is impossible to calculate if
Mean is 0
2. Most appropriate one  It is difficult to calculate
if the values are both
positive and negative
3. Based on Mean numbers & if the mean is
and Standard close to 0.
Deviation
Practical Uses of Coefficient of Variance

INVESTMENT ANALYSIS 
STOCK MARKET

RISK EVALUATION

COMBINED STANDARD DEVIATION OF SEVERAL GROUPS

PERFORMANCES OF TWO PLAYERS

INDUSTRIES & FACTORIES



Mathematical
Application
Coefficient of range


Let 1,2,4,6,7 is a set of values of a
distribution. Here, Highest Value, XH=7 &
Lowest Value, XL=1
So, Range, R= 7-1 = 6
𝐑
Now, Coefficient of Range X + × 100
H
= XL
𝟔
=𝟕+ 𝟏 × 100
=75%
Coefficient of Quartile deviation
students in 5 classes are 110, 150, 180, 190, 240 is a set of values.

𝐍+ 𝟏
Here, Q1= size of th item =
𝟒
130
𝟑(𝐍+𝟏)
And, Q3 = size th item =
𝟒
of 215
So, Coefficient of Quartile Deviation =QQ33+– Q
Q11× 100

215−130
= 215+13 × 100= 24.64 %
Coefficient of Mean Deviation

18. 
Let the ages of 5 boys in a class is 12, 14, 14, 15,
So their Mean, 𝐱 = 𝟏𝟐+𝟏𝟒+𝟏𝟒+𝟏𝟓+𝟏𝟖 = 14.6
𝟓
Mean Deviation, MD = | 𝒙−𝑵𝒙|

= |12−14.6| + |14−14.6| + |14−𝟓 14.6|+ |15−14.6| + |


= 1.52
18−14.6|

Now, the Coefficient of MD= 𝐌 𝐃 × 𝟏𝟎𝟎= 𝟏.𝟓𝟐× 𝟏𝟎𝟎= 10.41%


𝐱
Coefficient of
SuVppoasertihae rteituornns on an investment for 4

years is Tk.1000, Tk.3000, Tk.4500 & Tk.5000.

So, Mean, 𝐱 = 3375


Standard Deviation, SD = 1796.99
So,
Coefficient of Variation, CV= 𝐒𝐃𝐱× 100

= 𝟏𝟕𝟗𝟔.𝟗𝟑𝟑×𝟕𝟓100 =
53.24%
The daily sale of sugar in a certain grocery shop
is given below :
Monday Tuesday Wednesday Thursday Friday
Saturday 75 kg 120 kg 12 kg 50 kg 70.5 kg 140.5
kg respectively.
No of sale of sugar
Monda Days 60


yTuesda 120
yWednesda 10
yThursda 50
yFriday 70
Saturday 140
𝜮 𝒐𝒇𝑫𝒂𝒚𝒔 = 𝟔 𝜮𝒙= 𝟒𝟓𝟎

𝑥 4𝟓𝟎
Mean, 𝑥= = = 7𝟓
𝑛 6
x 𝒙𝟐

60 3600


120 14400
10 100
50 2500
70 4900
140 19600
𝜮𝒙 = 𝟒𝟓𝟎 𝜮𝒙𝟐= 45100

𝟐 𝟐
𝜮𝒙 𝟒𝟓𝟎
Standard deviation: 𝝈 = 𝜮𝒙𝟐 = 𝟒𝟓𝟏𝟎𝟎 =
𝒏− 𝒏 𝟔− 𝟔
𝟕𝟓𝟏𝟔. 𝟔𝟔− 𝟓𝟔𝟐𝟓= 𝟒𝟑. 𝟒𝟗
Quartile
Deviation


The marks of 7 students in Mathematics result are
given below :
70, 85, 92,68, 75, 96, 84
Find out-
• First Quartile Deviation
• Third Quartile Deviation
Quartile
deviation


Arranging the data in ascending
order we get,
68,70,75,84,85,92,96
𝐧+ 𝟏
𝐡𝐭 𝟑𝒏 + 𝟏𝒉𝒕
𝐐
×𝟏=First𝐟 quartile
𝐞𝐳𝐢𝐬𝐨 𝐦
𝐞𝐭 𝐢 𝑸𝟑= 𝒆
𝒛𝒐
×Third𝒊𝒔𝒇 Quartile 𝒆𝒎
𝒕𝒊
𝟒 𝟒
𝒉𝒕
𝟕+ 𝟏 𝐡𝐭 = size 𝟑𝟕+𝟏 𝒆𝒕𝒎𝒊
= size of 𝐦
𝐞𝐭 𝐢 of
𝟒
𝟒 = size of 6th
= size of 2nd item
item. =92
= 70
Tha“nk

you

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