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Measures of Dispersion

Measures of dispersion quantify the extent to which data values differ from the average, providing insight into data distribution. Key measures include Range, Quartile Deviation, Mean Deviation, and Standard Deviation, each with their own merits and demerits. Additionally, dispersion can be classified into absolute measures, which are expressed in the unit of the variable, and relative measures, which are ratios or percentages of the average.

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19 views37 pages

Measures of Dispersion

Measures of dispersion quantify the extent to which data values differ from the average, providing insight into data distribution. Key measures include Range, Quartile Deviation, Mean Deviation, and Standard Deviation, each with their own merits and demerits. Additionally, dispersion can be classified into absolute measures, which are expressed in the unit of the variable, and relative measures, which are ratios or percentages of the average.

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Measures of Dispersion

BS – Unit II
What is Measures of Dispersion?
• The measure of dispersion indicates the scattering of
data. It explains the disparity of data from one another
delivering a precise view of the distribution of data.
The measure of dispersion displays and gives us an idea
about the variation and central value of an individual
item.
• In other words, Dispersion is the extent to which values
in a distribution differ from the average of the
distribution. It gives us an idea about the extent to
which individual items vary from one another and from
the central value.
• The variation can be measured in different numerical measures
namely:
• (i) Range – It is the simplest method of measurement of dispersion
and defines the difference between the largest and the smallest
item in a given distribution. Suppose, If Y max and Y min are the
two ultimate items then
• Range = Y max – Y min
• (ii) Quartile Deviation – It is known as Semi-Inter-Quartile Range
i.e. half of the difference between the upper quartile and lower
quartile. The first quartile is derived as (Q), the middle digit (Q1)
connects the least number with the median of the data. The
median of a data set is the (Q2) second quartile. Lastly, the number
connecting the largest number and the median is the third quartile
(Q3). Quartile deviation can be calculated by
• Q = ½ × (Q3 – Q1)
• What Are the Merits and Demerits of Range?
• Merits
• It is very easy to calculate and simple to understand.
• No special knowledge is needed while calculating range.
• It takes least time for computation.
• It provides the broad picture of the data at a glance.
• Demerits
• It is a crude measure because it is only based on two
extreme values (highest and lowest).
• It cannot be calculated in case of open-ended series.
• Range is significantly affected by fluctuations of sampling
i.e. it varies widely from sample to sample.
• Merits and Demerits of Quartile Deviation
• Merits
• It is also quite easy to calculate and simple to understand.
• It can be used even in case of open-end distribution.
• It is less affected by extreme values so, it a superior to ‘Range’.
• It is more useful when dispersion of middle 50% is to be computed.
• Demerits
• It is not based on all the observations.
• It is not capable of further algebraic treatment or statistical analysis.
• It is affected considerably by fluctuations of sampling.
• It is not regarded as very reliable measure of dispersion because it
ignores 50% observations.
• (iii) Mean Deviation-Mean deviation is the arithmetic
mean (average) of deviations ⎜D⎜of observations
from a central value {Mean or Median or Mode
denoted by A}.
• Mean deviation can be evaluated by using the formula:
• M.D = 1⁄n [∑|xi – A|]

• (iv) Standard Deviation- Standard deviation is the


Square Root of the Arithmetic Average of the squared
of the deviations measured from the mean. The
standard deviation is given as
• σ = [(Σ (yi – ȳ)² ⁄ n] ½ = [(Σ yi² ⁄ n) – ȳ²] ½
• What Are the Merits and Demerits of Mean Deviation?
• Merits
• It is based on all the observations of the series and not only on the
limits like Range and QD.
• It is simple to calculate and easy to understand.
• It is not much affected by extreme values.
• For calculating mean deviation, deviations can be taken from any
average.
• Demerits
• Ignoring + and – signs is bad from the mathematical viewpoint.
• It is not capable of further mathematical treatment.
• It is difficult to compute when mean or median are in fraction.
• It may not be possible to use this method in case of Open ended
series.
• 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 etc.

• (2) Relative Measures


• Relative measures of dispersion are obtained as ratios or
percentages of the average.
• These are also known as ‘Coefficient of dispersion’
• These are pure numbers or percentages totally
independent of the units of measurements.
• Characteristics of a Good Measure of Dispersion
• It should be easy to calculate & simple to understand.
• It should be based on all the observations of the series.
• It should be rigidly defined.
• It should not be affected by extreme values
• It should not be unduly affected by sampling
fluctuations.
• It should be capable of further mathematical treatment
and statistical analysis.
• What Are the Various ‘Absolute Measures’ of Dispersion?
• Following Are the Different ‘absolute Measures’ of Dispersion:

• (1) Range
• It is the simplest method of measurement of dispersion.
• It is defined as the difference between the largest and the smallest
item in a given distribution.
• Range = Largest item (L) – Smallest item (S)

• (2) Inter-quartile Range


• It is defined as the difference between the Upper Quartile and
Lower Quartile of a given distribution.
• Inter-quartile Range = Upper Quartile (Q3)–Lower Quartile(Q1)2
• (3) Quartile Deviation
• It is known as Semi-Inter-Quartile Range i.e. half of the difference
between the upper quartile and lower quartile.
• Quartile Deviation = [upper quartile (Q3) – lower quartile (Q1)]/2

• (4) Mean Deviation


• Mean deviation is the arithmetic mean (average) of deviations
⎜D⎜of observations from a central value {Mean or Median or
Mode}.

• (5) Standard Deviation


• Standard deviation is the Square Root of the Arithmetic Average of
the squared of the deviations measured from the mean.
Quartile deviation
Mean deviation( ungrouped data)
Mean deviation
Standard deviation
What Are the Various ‘Relative Measures’ of Dispersion?
• Following Are the Relative Measure of Dispersion:
• (1) Coefficient of Range
• It refers to the ratio of the difference between two extreme
items of the distribution to their sum.
• Coefficient of Range =
[Largest Item(L)−Smallest Item(S)]/[Largest I tem(L)+Smallest Item(S)]
• (2) Coefficient of Quartile Deviation
• It refers to the ratio of the difference between Upper
Quartile and Lower Quartile of a distribution to their sum.
• Coefficient of Quartile Deviation = ( Q3-Q1)/(Q3+Q1)
• (3) Coefficient of Mean Deviation
• Mean deviation is an absolute measure of dispersion.
• In order to transform it into a relative measure, it is
divided by the particular average, from which it has
been calculated.
• It is then known as the Coefficient of Mean Deviation.
• (4) Coefficient of Standard Deviation
• It is calculated by dividing the standard deviation (σ) by
the mean (X̅) of the data.
• Coefficient of Standard Deviation =σ /X̅
• (5) Coefficient of Variation
• It is used to compare two data with respect to stability
(or uniformity or consistency or homogeneity).
• It indicates the relationship between the standard
deviation and the arithmetic mean expressed in terms
of percentage.
• Coefficient of Variation (C.V.) = (σ / X̅ ) x 100
• Where, C.V. = Coefficient of Variation; σ= Standard
Deviation;
• X̅ = Arithmetic Mean

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