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Measures of Dispersion

The document outlines various measures of dispersion and variation, including range, interquartile range, average deviation, variance, and standard deviation. It explains how these measures assess the spread of data around the mean and provides formulas and examples for calculating each measure. Additionally, it highlights the importance of understanding these statistical concepts in analyzing data distributions.

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9 views23 pages

Measures of Dispersion

The document outlines various measures of dispersion and variation, including range, interquartile range, average deviation, variance, and standard deviation. It explains how these measures assess the spread of data around the mean and provides formulas and examples for calculating each measure. Additionally, it highlights the importance of understanding these statistical concepts in analyzing data distributions.

Uploaded by

msrect14
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Measures of Dispersion/

Measures of Variation
Range
Interquartile Range/ Quartile Deviation
Average Deviation
Variance
Standard Deviation
Summary Definitions
▪ The measure of dispersion shows how the data is spread or scattered
around the mean.

▪ The measure of location or central tendency is a central value that


the data values group around. It gives an average value.

▪ The measure of skewness is how symmetrical (or not) the distribution


of data values is.

Basic Business Statistics, 11e © 2009


Chap 3-2
Prentice-Hall, Inc..
RANGE
•among the measures of variation, the range is considered
the simplest. We defined the range as the difference
between the highest and the lowest value in the
distribution.

R=H–L
Where: H – represents the highest value
L – represents the lowest values
Measures of Dispersion:
The Range
▪ Simplest measure of dispersion
▪ Difference between the largest and the smallest values:

Range = Xlargest – Xsmallest

Example:

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Range = 13 - 1 = 12
RANGE
In case of grouped data, the
difference between the highest
upper class boundary and the
lowest lower class boundary is
considered the range.
SEMI – INTER QUARTILE RANGE OR QUARTILE DEVIATION
- This value is obtained by getting one half the difference
between the third and the first quartiles

Disadvantages of quartile deviation:


a.Not all items are included in the distribution
b.Since Q3 and Q1 are positional measure, then Q also
becomes a positional measure.
The Interquartile Range (IQR)
• The IQR is Q3 – Q1 and measures the spread in
the middle 50% of the data

• The IQR is a measure of variability that is not


influenced by outliers or extreme values

• Measures like Q1, Q3, and IQR that are not


influenced by outliers are called resistant
measures
Calculating The Interquartile Range

Example:
Median X
X Q1 Q3 maximum
minimum (Q2)
25% 25% 25% 25%

12 30 45 57 70

Interquartile range
= 57 – 30 = 27
AVERAGE DEVIATION
- Refers to the arithmetic mean of the
absolute deviations of the values
from the mean of the distribution.
- This measure is sometimes referred
as the mean absolute deviation
Average Deviation for Ungrouped Data

σ 𝑥 − 𝑥ҧ
𝐴𝐷 =
𝑛

Where: x - represents the individual values


𝑥ҧ - is the mean of the distribution
Steps:
•Arrange the values in column according to
magnitude.
•Compute the value of the mean.
•Determine the deviations ( x - 𝑥).
ҧ
•Convert the deviations into positive deviations.
Use the absolute value sign /x-𝑥/.
ҧ
•Get the sum of the absolute deviations.
•Divide the sum by n.
Example : Consider the
following values, determine
the value of the average
deviation.

x : 15, 8, 7, 12, 11, 9, 10, 6


Average Deviation for Grouped Data
σ 𝑓 𝑥 − 𝑥ҧ
𝐴𝐷 =
𝑛

Where: f - represents the frequency of each class


x - the midpoint of each class
𝑥ҧ - is the mean of the distribution
n - the total number of frequency
Steps
1.Compute the value of the mean.
2.Get the deviation by using the expression ( x - 𝑥ҧ ).
3.Multiply the deviation by its corresponding
frequency.
4.Add the results.
5.Divide the sum by n.
VARIANCE

Variance for Ungrouped Data


σ 2
𝑥 − 𝑥ҧ
𝑠2 =
𝑛
Where: x - represents the individual values in
the distribution
𝑥ҧ - is the mean of the distribution
n - the sample size
Steps
• Compute the value of the mean.
• Get the deviation of each value from the
mean.
• Square the deviation
• Calculate the sum of the squared deviations
• Divide the sum by the total number of
values.
Compute the value of
the variance of the
following measurements

14, 5, 7, 12, 11, 17, 10, 6


Variance for Grouped Data

σ 𝑓 𝑥 − 𝑥ҧ 2
2
𝑠 =
𝑛
Where: x - midpoint of each class interval
𝑥ҧ - mean
n - sample size
Steps
•Compute the value of the mean.
•Determine the deviation by subtracting the
mean from the midpoint of each class interval.
•Square the deviations obtained
•Multiply the frequencies by their
corresponding squared deviations
•Add the results.
•Divide the results from the sample size.
STANDARD DEVIATION
•The most used measure of
dispersion.
•Its value tells how closely the
values of a data set are clustered
around the mean.
In the case of ungrouped data, the value of s
can be computed by using the following
relations.

2 2
σ 𝑥 − 𝑥ҧ σ 𝑥2 σ𝑥
𝑠= 𝑜𝑟 𝑠 = −
𝑛 𝑛 𝑛
For grouped data, the computing
formula is

σ 𝑓 𝑥 − 𝑥ҧ 2
𝑠=
𝑛

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