CH 4
CH 4
It is the crudest absolute measures of variation. It is widely used in the construction of quality control
charts and description of daily temperature.
Properties of range
It is affected by extreme values.
It does not take into account all observations.
It is easy to calculate and simple to understand.
It does not tell anything about the distribution of values in the set of data relative to some
measures of central tendency.
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Measure of variation(Ch 4)
Note: In case of grouped data, the mid-point of each class interval is treated as representative of the
class and we can use the above formula. Besides,
Properties of mean deviation
It is relatively simple to understand as compared to standard deviation.
Its computation is simple.
It is less affected by extreme values than standard deviation.
It is better than the range and relative range since it is based on all observations.
It is not suitable for further statistical treatment.
iii. Variance, standard deviation and coefficient of variation
The variance is the average of the squares of the distance each value is from the mean. The symbol for
the population variance is σ2. Let be the measurements on N population units then, the
population variance is given by the formula:
(∑ )
N 2
N N
xi
∑ ( xi −μ ) ∑ x −
i=1
2 2
i
,
2 i =1 i =1 N
σ = =
N N
Where µ is population mean and N is population size
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Measure of variation(Ch 4)
Let be the measurements on n sample units then, the sample variance is denoted by S 2, and
( )
n 2
n n ∑ xi n
∑ ( x i−x ) ∑ x − ∑ x 2i −n x 2
i=1
its formula is 2 2
i
where is the sample mean and n is the
2 i=1 i=1 n i =1
S= = =
n−1 n−1 n−1
sample size.
Standard deviation, denoted by σ or S, is the square root of the variance. That is, Population standard
deviation and sample standard deviation
Example: For a newly created position, a manager interviewed the following numbers of applicants
each day over a five-day period: 16, 19, 15, 15, and 14. Find the variance and standard deviation.
5
Solution:
∑ xi 16+19+ 15+15+14 79
x= i=1 = = =15.8
5 5 5
5
(∑ )
n 2
n
xi 2
( 16+ … 14 ) 6241
∑x 2 i=1
i – 16 2+ …+14 2− 1263−
n 5 5 14.8
S2= i=1 = = = =3.7
n−1 4 4 4
( )
k 2
k k ∑ f i xi
∑ f i ( x i−x ) ∑ f i x 2i −
2 i=1
n
S2= i=1 = i=1
n−1 n−1
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Measure of variation(Ch 4)
A distribution having less coefficient of variation is said to be less variable or more consistent or more
uniform or more homogeneous.
Example: Last semester, the students of two departments, A and B took Stat 276 course. At the end of
the semester, the following information was recorded.
Dept A Dept B
Mean score 79 64
SD 23 11
Compare the relative dispersion of the two departments.
,
Since > , the variation is department A is greater or in department B, the distribution of the marks is
more consistent.
Exercise: The mean weight of 20 children was found to be 30 kg with variance of 16kg 2 and their mean
height was 150 cm with variance of 25cm2. Compare the variability of weight and height of these
children.
iv. The standard scores
A standard score is a measure that describes the relative position of a single score in the entire
distribution of scores in terms of the mean and standard deviation. It also gives us the number of
standard deviations a particular observation lie above or below the mean.
Standard score,
Where x is the value of the observation, μ∧ X are the population & sample mean and σ ∧S arestandard
deviation of the population and sample respectively.
Interpretation:
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Measure of variation(Ch 4)
Example: Two sections were given an exam in a course. The average score was 72 with standard
deviation of 6 for section 1 and 85 with standard deviation of 5 for section 2. Student A from section 1
scored 84 and student B from section 2 scored 90. Who performed better relative to his/her group?
Solution:
Section 1: x = 72, S = 6 and score of student A from Section 1; A x = 84
Section 2: x = 85, S = 5 and score of student B from Section 2; B x = 90
Z-score of student A:
Z-score of student B:
From these two standard scores, we can conclude that student A has performed better relative to his/her
section students because his/her score is two standard deviations above the mean score of selection 1
while the score of student B is only one standard deviation above the mean score of section 2 students.
Exercise: A student scored 65 on a calculus test that had a mean of 50 and a standard deviation of 10;
she scored 30 on a algebra test with a mean of 25 and a standard deviation of 5. Compare her relative
positions on each test.
v. Skewness and kurtosis
Skweness refers to lack of symmetry in a distribution. If a distribution is not symmetrical we call it
skewed distribution. Note that for a symmetrical and unimodal distribution: Mean = median = mode
Measure of skewness:
Interpretation:
Kurtosis refers to the degree of peakedness of a distribution. When the values of a distribution are
closely bunched around the mode in such a way that the peak of the distribution becomes relatively
high, the distribution is said to be leptokurtic. If it is flat topped we call it platykurtic. A distribution
which is neither highly peaked nor flat topped is known as a mesokurtic distribution (normal).
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Measure of variation(Ch 4)
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