Unit-4

Measure of Dispersion
Dispersion: Dispersion is the measure of variations of items (scatter, spread or variation).
There are two types of measure of dispersion
i) Absolute Measure
ii) Relative Measure
I) Absolute measures
1. Range
2. Quartile Deviation or Semi Inter-Quartile Range
3. Average Deviation or Mean Deviation
4. Standard Deviation
II) Relative measures
1. Coefficient of Range
2. Coefficient of Quartile Deviation
3. Coefficient of Mean Deviation
4. Coefficient of Variation (C.V)

Types of Measures of Dispersion

(1) Absolute measures

 Absolute measures of dispersion are expressed in the unit of variable itself, like
kilograms, rupees, centimeters, marks,
(2) Relative measures

 Relative measures of dispersion are obtained as ratios or percentages of the average.

 These are also known as coefficients of dispersion.
 These are pure numbers or percentages that are totally independent of the units

Characteristics of good measures of dispersion.

 It should be easy to calculate and simple to understand.

 It should be based on all the observations of the series.
 It should be rigidly defined.
 It should be treated algebraically.
 It should not be affected by extreme values.
 It should not be unduly affected by sampling fluctuations.

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 Importance of Dispersion
1. Dispersion can control the various conclusions drawn from central tendency.

2. Dispersion measures the inequalities in the distribution of income and wealth.

3. Dispersion can evaluate the average profit, average sales, average cost etc. in industry,

trade or business.

4. It is used to control price and output.

5. It removes the defects of the averages and presents doubtful conclusions in their true form

Properties of Dispersion

1. It should be rigidly defined and free from any ambiguity.

2. It should be simple to follow.

3. It should be easy for computation and free from complicated procedure of calculations.

4. It should be based on all the items of the series.

5. It should be capable of further algebraic treatment.

Uses of Range: Range is used in industries for the statistical quality control of the
manufactured product by the construction of control chart.
.
Uses of Standard Deviation (S.D): S.D is the best measure of dispersion. It is widely used in
sampling theory and biologists. It is used in Coefficient of correlation and in the study of
symmetrical frequency distribution

Properties of Geometric Mean (G.M).

1. The G.M is less than mean.
2. The product of the items remains unchanged if each item is replaces by the G.M.
3. The G.M of the ratio of corresponding observations in two series is equal to the ratios of
their G.M.
4. The geometric mean of the products of corresponding items in two series.

Properties of variance and standard Deviation (S.D):

1. Variance and S.D of a constant is zero. (i.e.; V(C) = 0 & S.D (C) = 0
2. Variance and Standard deviation are unaffected by the change of origin.
3. Variance and S.D are affected by the change of scale.
4. The variance and S.D of the sum or difference of two independent variables is equal to the
sum of their respective variance and S.D respectively.

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 Merits and Demerits of Range.
Merits Demerits
It is easy to calculate. It cannot be applied to open and classes.
It is easiest to compute. It is not suitable for mathematical treatment.
It is less time consuming. It is very sensitive to the size of sample.
It is extensively used statistical qualityIt is nor reliable, because it is affected by the
control. extreme items.

Merits and Demerits of Standard Deviation.

Merits Demerits
It is based on all the observation. It is not easy to understand and it is difficult
to calculate.
It is the most important and widely usedIt is affected by the value of every items in
measure of dispersion. the series.
It is possible for further algebraic treatment. It gives weight age to only extreme values.
Squaring the deviations makes all of themIt cannot be used for the purpose of
positive. comparison.
It provides the unit of measurement for theIt has not found favours with the economists
normal distribution. and businessmen.

Merits and demerits of Quartile Deviation

Merits

1. It is also quite easy to calculate and simple to understand.

2. It can be used even in case of open-end distribution.
3. It is less affected by extreme values so, it a superior to ‘Range’.
4. It is more useful when the dispersion of the middle 50% is to be computed.
Demerits

1. It is not based on all the observations.

2. It is not capable of further algebraic treatment or statistical analysis.
3. It is affected considerably by fluctuations of sampling.
4. It is not regarded as a very reliable measure of dispersion because it ignores 50%
observations
Merits and demerits of mean deviation.
Merits

1. It is based on all the observations of the series and not only on the limits like Range
and QD.
2. It is simple to calculate and easy to understand.
3. It is not much affected by extreme values.
4. For calculating mean deviation, deviations can be taken from any average.

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Demerits

1. Ignoring + and – signs is bad from the mathematical viewpoint.

2. It is not capable of further mathematical treatment.
3. It is difficult to compute when the mean or median is in fraction.
4. It may not be possible to use this method in case of open ended series.

Explain measure of Dispersion.

Range: The different between the largest and smallest value of the distribution. R= L - S.
LS
Coff of Range 
LS

Variance: The variance is defined as the average squared deviation from the mean and is
∑𝑥 2
2
∑𝑥
denoted by  2 = ( )−( )
𝑛 𝑛

Standard Deviation: The positive square root of variance is called standard deviation
∑ 𝑥2 ∑𝑥 2
S .D ( ) = √( )−( )
𝑛 𝑛
Coefficient of Variation: Coefficient of variation is defined as the standard deviation of a
distribution divided the mean of the distribution and multiple by 100. Coefficient of variation

is defined as C.V =  100
x
Mean Deviation (Average Deviation): The average of the absolute values of deviation from
the mean (median or mode) is called Mean Deviation.
1 n
M .D about A =  xi  A
n i 1
Where A is any central value i.e. mean or median or mode etc.

M .D
Coeff M .D  , where A is central value from which the deviations are taken.
A

Quartile Deviation (Semi Inter quartile): Quartile deviation is half of the difference
Q  Q1
between the upper quartile and lower quartile. Q.D  3
2
Q3  Q1 is called Inter quartile range .

Q3  Q1
Coff of QD 
Q3  Q1

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 Raw Data

1. Find the range and coefficient range for the following data.
4, 8, 6, 8 ,2, 8 ,6, 3
Solution:
(i) Range = L – S or R = L - S
Here L = 8 (Largest Value)
S = 2 (Smallest Value)

R=8-2=6

𝐿−𝑆 8−2 6
(ii) Coefficient of Range = = = = 0.6
𝐿+𝑆 8+2 10

Discrete Data

1. Find the range and coefficient of range for the following data.

X 1 2 3 4 5
F 2 4 6 5 1
Solution:
X F
1 S 2
2 4
3 6
4 5
5 L 1
N=18
(i) R = L - S
R=5-1=4
𝐿−𝑆 5−1 4
(ii) Coefficient of Range = = = = 0.667
𝐿+𝑆 5+1 6

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 Grouped Data

1.Find Range and Coefficient of range for the following data

C.I 10-20 20-30 30-40 40-50

F 18 22 15 8

Solution:
C.I F

S 10-20 18

20-30 22

30-40 15

40-50 L 8

N=63

(i) R = L – S
RR==50-10 ==
50 - 10 4040
𝐿−𝑆 50−10 40
(ii) Coefficient of Range = = = = 0.667
𝐿+𝑆 50+10 60

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 Raw Data

1. Find Variance and Standard deviation for the following data

4, 8, 6, 8 ,2, 8 ,6, 3
Calculation Table:
x x2
4 4 x 4 =16
8 8 x 8 = 64
6 36
8 64
2 4
8 64
6 36
3 9
∑ 𝑥 = 45 ∑ 𝑥 2 = 293

∑ 𝑥2 ∑𝑥 2 293 45 2
Variance = ( )−( 𝑛 ) =( ) − ( ) =(36.625) − (5.625) 2
𝑛 8 8

= 36.625 − 31.641
𝜎 2 = 4.984
∑ 𝑥2 ∑𝑥 2
S.D = 𝜎 =√( )−( )
𝑛 𝑛

293 45 2
𝜎 = √( ) − ( ) = √(36.625) − (5.625) 2 = √36.625 − 31.641
8 8

= √4.984 = 2.232

𝜎 = 2.232

1.Find Coefficient of Variance for the following data 4, 8, 6, 8 ,2, 8 ,6, 3

Solution:
∑𝑥 45
𝑥̅ = = = 5.625
𝑛 8

𝜎 2.232
C.V = x 100 = x 100 = 0.368 x100 = 39.68
𝑥̅ 5.625

C.V = 39.68 7
 Discrete Data

1. Find Variance, Standard Deviation and Coefficient of variance following

data. X 1 2 3 4 5

F 2 4 6 5 1

Calculation Table: Variance & Standard Deviation

X F X2 XF X2F
1 2 1 1 x 2 =2 1 x 2 =2
2 4 4 2x4=8 4 x 4 = 16
3 6 9 18 54
4 5 16 20 80
5 1 25 5 25
N=18 ∑ 𝑋𝐹 = 53 ∑ 𝑋 2 𝐹 = 177

∑ 𝑓𝑥 2 53 2
2
2 ∑ 𝑓𝑥 177
(i) Variance = 𝜎 = ( )−( ) =( ) − ( ) = (9.838) − (2.944) 2
𝑁 𝑁 18 18

𝜎 2 = 9.838 - 8.669 = 1.163

𝜎 2 = 1.163
163
∑ 𝑓𝑥 2
2
∑ 𝑓𝑥 177 53 2
(ii) S.D = √( )−( ) = √( ) − ( ) = √9.838 − (2.944) 2
𝑁 𝑁 18 18

= √9.838 − 8.669 = √1.163 = 1.078

𝜎 = 1.078

(iii) Coefficient of Variation

∑ 𝑓𝑥 53
𝑥̅ = = = 2.94
𝑁 18

𝜎 1.078
C.V = x 100 = x 100 = 0.3667 x100 = 36.67
𝑥̅ 2.94

C.V = 36.67

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 Continuous Data

1. Find Variance, Standard Deviation and Coefficient of variance following data

C.I 10-20 20-30 30-40 40-50
F 18 22 15 8

Calculation Table:
C.I F Mid Value X X2 FX FX2
10-20 18 15 1225 270 4050
20-30 22 25 625 550 13700
30-40 15 35 1225 525 19375
40-50 8 45 2025 360 16200
N=63 ∑ 𝐹𝑋 = 1705 ∑ 𝐹𝑋 2 = 52375

2 ∑ 𝑓𝑥2 ∑ 𝑓𝑥 2 52375 1705 2

(i) Variance = 𝜎 = ( )−( ) =( )−( ) = (831) − (27.06)2
𝑁 𝑁 63 63

𝜎 2 = 831 – 732.433 = 98.5

𝜎 2 = 98.5
163
∑ 𝑓𝑥 2
2
∑ 𝑓𝑥 52375 1705 2
(ii) S.D = √( )−( ) = √( )−( ) = √831 − (27.06) 2
𝑁 𝑁 63 63

= √831 − 732.433 = √98.5 = 9.928

𝜎 = 9.928

(iii) Coefficient of Variation

∑ 𝑓𝑥 1705
𝑥̅ = = = 27.06
𝑁 63

𝜎 9.928
C.V = x 100 = x 100 = 0.367 x100 = 36.69
𝑥̅ 27.06

C.V = 36.69

Note:
Standard Deviation shows the variation in data. If the data is close together, the
standard deviation will be small. If the data is spread out, the standard deviation
will be large.
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Coefficient of Variation

1. If the coefficient of variation is 50 per cent and a standard deviation is 4, find

the mean.
Solution:

2. The scores of two batsmen, A and B, in ten innings during a certain season,
are as under:
Mean score = 50; Standard deviation = 5
Mean score = 75; Standard deviation = 25
Find which of the batsmen is more consistent in scoring.
Solution:

The batsman with the smaller C.V is more consistent.

Since for Cricketer A, the C.V is smaller, he is more consistent than B.

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1. Price of a particular commodity in five years in two states is given below. From this
data, find the state which had more stable prices.
Price in Tamil Nadu 12 15 8 10 15
Price in Kerala 15 12 3 4 18

Solution:

∑ 𝑥2 ∑𝑥 2 ∑x
𝝈𝒙 = √( )−( 𝑛 ) 𝑥̅ =
𝑛 n
∑𝑦 2
∑𝑦 2 ∑y
𝝈𝒚 = √( )−( ) 𝑦̅ =
𝑛 𝑛 n

𝑥 𝑦 𝑥2 𝑦2
12 15 144 225
15 12 225 144
8 3 64 9
10 4 100 16
15 18 225 324
∑ 𝑥 =60 ∑ 𝑦 =52 ∑ 𝑥 2 =758 ∑ 𝑦2 =718

∑x 60 ∑y 52
𝑥̅ = = = 12 𝑦̅ = = 10.4
n 5 n 5

∑ 𝑥2 ∑𝑥 2 758 60 2
𝝈𝒙 = √(
𝑛
) − ( 𝑛 ) = √( 5
) − ( ) = √151.6 − 144 = √7.6 = 2.756
5

∑ 𝑦2 ∑𝑦 2 718 52 2
𝝈𝒚 = √( )−( ) = √( ) − ( ) = √143.6 − 108.16 = 35.44 =5.953
𝑛 𝑛 5 5

𝝈 2.756
C.Vx = ̅ x 100 = × 100 = 22.97
𝑋 12

𝝈 5.953
C.Vy = ̅ x 100 = × 100 = 57.24
𝑦 10.4

C.Vx < C.Vy ie., 22.97< 57.24

∴ A is more consistent or A is more stable prices.

The weekly sales of two products A and B were recorded as given below
Product A 10 15 12 12 10 14 12
Product B 16 15 18 14 11 10 10
Find out which of the two shows greater fluctuations in sales.
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 Raw Data

1.Find Mean Deviation and coefficient of mean deviation for the following
data. 4, 8, 6, 8 ,2, 8 ,6, 3

Calculation Table:
𝑋̅ = 6
X |𝑋 − 𝑋̅|

4 |4 − 6|= 2 Here n = 8
∑𝑥 45
8 |8 − 6|= 2 𝑥̅ = = = 5.625 ≅ 6
𝑛 8
6 |6 − 6|= 0
̅|
∑|𝑋−𝑋 15
8 2 M.D =
𝑛
= 8
= 1.875
2 4 M.D = 1.875

8 2 𝑴.𝑫 𝟏.𝟖𝟕𝟓
Coefficient of M.D = = = 0.334
𝑴𝑬𝑨𝑵 𝟓.𝟔𝟐𝟓
6 0
Coefficient of MD = 0.334
3 3

∑ 𝑋 = 45 ∑|𝑋 − 𝑋̅ |= 15

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 Discrete Data

1.Find Mean Deviation and coefficient of mean deviation for the following
data
X 1 2 3 4 5

F 2 4 6 5 1
Calculation
Table:

X F XF |𝑋 − 𝑋̅| F |𝑋 − 𝑋̅|

1 2 1 x 2 =2 2 4

2 4 2x4=8 1 4

3 6 18 0 0

4 5 20 1 5

5 1 5 2 2

N=18 ∑ 𝐹𝑋 = 53 ∑ F |𝑋 − 𝑋̅ | = 15

∑ 𝑓𝑥 53
𝑥̅ = = = 2.94 ≈ 3
𝑁 18
̅|
∑ 𝐹|𝑋−𝑋 15
M.D =
𝑁
= 18 = 0.833
M.D = 0.833
𝑴.𝑫 𝟎.𝟖𝟑𝟑
Coefficient of M.D = = = 0.283
𝑴𝑬𝑨𝑵 𝟐.𝟗𝟒

Coefficient of MD = 0.283

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 Continuous Data

1.Find Mean Deviation and coefficient of mean deviation for the following
Data
C.I 10-20 20-30 30-40 40-50

F 18 22 15 8

Calculation Table:
C.I F Mid Value X FX |𝑋 − 𝑋̅| F |𝑋 − 𝑋̅|

10-20 18 15 270 12 18 x 2= 16

20-30 22 25 550 2 44

30-40 15 35 525 8 120

40-50 8 45 360 18 144

N=63 ∑ 𝐹𝑋 = 1705 ∑ F |𝑋 − 𝑋̅| = 524

∑ 𝑓𝑥 1705
𝑥̅ = = = 27.06 ≈ 27
𝑁 63

𝑥̅ =27

̅|
∑ 𝐹|𝑋−𝑋 524
M.D =
𝑁
= = 8.317
63

M.D = 8.317

𝑴.𝑫 𝟖.𝟑𝟏𝟕
Coefficient of M.D = = = 0.307
𝑴𝑬𝑨𝑵 𝟐𝟕.𝟎𝟔

Coefficient of MD = 0.307

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 Raw Data

1.Find Qurtile Deviation and coefficient of Qurtile deviation for the following
data. 4, 8, 6, 8 ,2, 8 ,6, 3

Solution:
Here n= 8
Arrange the data in ascending order 2, 3 4, 6, 6, 8 , 8 ,8
𝑛+1 𝑡ℎ 8+1 𝑡ℎ 9 𝑡ℎ
Q1 = ( ) items ⇒ ( ) items ⇒ ( ) items
4 4 4
⇒ 2.25th items ≈ 2th items = 3

Q1 = 3
3 3 3
Q3 = (𝑛 + 1)𝑡ℎ items ⇒ (8 + 1)𝑡ℎ items ⇒ (9)𝑡ℎ items
4 4 4
27 𝑡ℎ
⇒( ) Items ⇒ 6.75th items ≈ 7th items = 8
4
Q3 = 8

Q3−Q1 8−3 5
Q.D = = = 2 = 2.5
2 2

Q.D =2.5

Q3−Q1 8−3 5
Coefficient of Quartile Deviation =
Q3+Q1
= = 11 = 0.455
8+3

Coefficient of Quartile Deviation = 0.455

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 Discrete Data

1.Find Quartile Deviation and coefficient of Quartile deviation for the

following data
X 3 6 9 12 15
F 2 25 45 22 6
Calculation Table:
X F CF
3 2 2
6 25 27
9 45 72 55.5
12 22 104 83.2
15 6 110 5
N = 110
𝑵+𝟏 𝒕𝒉
𝑸𝟏 = ( ) items
𝟒
110+1 𝑡ℎ 111 𝑡ℎ
=( ) =( ) = (55.5)𝑡ℎ items =9
2 2

𝑸𝟏 = 9

𝟑(𝑵+𝟏) 𝒕𝒉
𝑸𝟑 = ( ) items
𝟒
𝟑(𝟏𝟏𝟎+𝟏) 𝒕𝒉 𝟑(𝟏𝟏𝟏) 𝒕𝒉 𝟑𝟑𝟑 𝒕𝒉
=( ) items = ( ) items = ( ) items
𝟒 𝟒 𝟒
= (83.25)𝑡ℎ items = 12

𝑸𝟑 = 12

Q3−Q1 12−9 3
Q.D = = = 2 = 1.5
2 2

Q.D = 1.5
Q.D = 1.5

Q3−Q1 12−9 3
Coefficient of Quartile Deviation =
Q3+Q1
= = = 0.2
12+3 15

Coefficient of Quartile Deviation = 0.2

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 GROUPED DATA

1. Find Quartile deviation and coefficient of Quartile deviation for the following data
C.I 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100

F 12 18 27 45 68 49 31 18 7

Solution:
C.I F CF

10-20 12 12

20-30 18 30

30-40 27 57(m)
𝒍 68.75
40-50 45(f) 102 5z

50-60 68 170(m)

𝒍 60-70 49(f) 219 206.5

70-80 31 250

80-90 18 268

90-100 7 275

Total N= 275

𝑁 275
Here = = 68.75
4 4

𝑁
𝑵 −𝑚
−𝒎 2
Q1 = 𝒍 =+ 𝑙(+ ( )𝑓× )𝒄 ×
Median 𝟒
𝒇

68.75−57 11.75
= 40 + ( ) × 10 = 40 + ( ) × 10
45 45

= 40 + 0.261(10) = 40 + 2.61 = 42.61

𝑸𝟏 = 42.61

𝟑𝑵
𝟒
−𝒎
Q3 = 𝒍 + ( )×𝒄
𝒇
17
 3𝑁 825
Here = = 206.25
4 4

206.25−170 206.25−170
Q 3 = 60 + ( ) × 10 = 60 + ( ) × 10
49 49
36.25
= 60 + ( ) × 10 = 60 + 0.739 x 10 = 60 + 7.39 = 67.39
49

𝑸𝟑 = 67.39

Q3−Q1 67.39−42.61 24.78

Q.D = = = = 12.39
2 2 2

Q.D = 12.39
Q.D = 1.5
Q3−Q1 67.39−42.61 24.78
Coefficient of Quartile Deviation = = = = 0.225
Q3+Q1 67.39+42.61 110

Coefficient of Quartile Deviation = 0.225

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