Documente Academic
Documente Profesional
Documente Cultură
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
Wide Dispersion
Reliabl
e
Algebraic Graphical
Absolute Relative
Algebraic Measure of Dispersion
× Mathematical way to calculate the
measure of dispersion.
× The way to calculate the measure
of dispersion by figures and
graphs.
1
3
These measure are calculated absolute
This is calculated from original data
measures
Absolute Measure Relative Measures
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
Range
Range
Range = H- L
= 20- 5 = 15
Merits and Demerits of Range
Mean deviation
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
Q.D = Q3 –𝟐 Q1
Merits of Quartile Deviation
Is not affected by
extreme items
Demerits of Quartile Deviation
Standard deviation is calculated as the
square root of average of squared
deviations taken from actual mean.
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
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.
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
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|
= 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