Measures of Dispersion:
I. Introduction.
II. Requirements of good measures.
III. Uses of Measures of Dispersion.
IV. Methods Of Studying Dispersion:
i. Absolute Measures of Dispersions:
i. Range (R)
ii. Quartile Deviation (Q.D.)
iii. Mean Deviation (M.D.)
iv. Standard Deviation (S. D.)
v. Variance
ii. Relative Measures of Dispersions:
i. Coefficient of Range
ii. Coefficient of Quartile Deviation (Q.D.)
iii. Coefficient of Mean Deviation (M.D.)
iv. Coefficient of Standard Deviation (S. D.)
v. Coefficient of Variation (C.V.)
I. Introduction.
We have the various measures of central tendency, like Mean, Median & Mode, it is a single figure that represent the whole data. Now we are interested to study this figure(i.e. measures of central tendency) is proper representative of actual values of the data. If most of the actual values in the data are close to the average then it is properly represent the data, and if the actual values of data are away from the average then it not properly represent the data. In that case we are interested to study how far the actual values away from the average is known as Dispersion. i.e. Dispersion Means the Spread of actual values from the average or mean.
foe example we consider the following data,
Observations |
Total |
Mean |
||||
Set A : |
101 |
98 |
99 |
102 |
400 |
100 |
Set B : |
1 |
0 |
1 |
398 |
400 |
100 |
The size of data and mean of the bot sets are same, is 100, but question is the mean is good representative of data or not ? both set have same mean, but the values in the set A are very close to the mean, then the mean is good representative, but in Set B the values are far from the mean. hence mean is not good representative of the data in set B, from this we see the difference between mean and actual values of data are less then mean is properly represent the data, (for set A), therefore we measure the variation in the data. or the measure of Dispersion.
i. Definition:- Dispersion is the Spread of value from the mean, Or deviation of different values of the data from it mean is known as Dispersion.
Following are the Objectives of Measures of Dispersion.
i. To Measure the Reliability of an average.
ii. To Compare the variability of different distribution.
iii, To control the variability.
II. Requirements of good measures.
The main objective of the Dispersion is to measure the Reliability of an Average. following are the Properties of good measures of dispersion.
i. It should be simple to understand and rigidly defined.
ii. It should be easy to calculate.
iii. It should be based on all observation in data.
iv. It should have sampling stability.
v. It should not ne unduly affected by extreme values.
III. Uses of Measures of Dispersion.
Measure of Dispersion is also known as measure of variability or spread. following are the some uses of Measures of Dispersion.
1.Understanding the distribution of data: Measure of dispersion help to understand the how data points are spread out around the central tendency (measure of central tendency means mean , median , mode), a small dispersion indicates the data points are close to central value, while the dispersion is larger indicates the large variability in data set.
2. Comparing Data set: Using the measures of dispersion finding which data set has greater variability, or comparing this data set based on variability in data points.
IV. Methods Of Studying Dispersion:
There are two types of measures of dispersion, i) Absolute Measure of dispersion and ii) Relative Measures of dispersion.
i) Absolute Measures of Dispersions: The measure of dispersion is expressed in the term of original unit of the data are called Absolute Measures of Dispersion. and following are the Absolute measures of Dispersions.
i. Range (R)
ii. Quartile Deviation (Q.D.)
iii. Mean Deviation (M.D.)
iv. Standard Deviation (S. D.)
v. Variance
ii.) Relative Measures of Dispersions: The measure of dispersion is expressed in Ratio or Percentage of are called Relative Measures of Dispersion. and following are the Relative measures of Dispersions.
i. Coefficient of Range
ii. Coefficient of Quartile Deviation (Q.D.)
iii. Coefficient of Mean Deviation (M.D.)
iv. Coefficient of Standard Deviation (S. D.)
v. Coefficient of Variation (C.V.)
we study one by one the measures of Dispersions
I. Range
Definition:- The range is the one of the simplest method of measuring Dispersion. It is defined as the Difference between the largest and smallest values of the data. Or the range is defined as the difference between maximum and minimum values in data sets.
it is formulated as
Range = L - S
Where L:- the largest value in data
S:- the smallest value in data.
Sometimes the Range is denoted as R.
It is an absolute measure of Dispersion.
Now the Relative measure of Dispersion corresponding to Range is called the coefficient of range. It is gives by
Coefficient of range = (L-S)/(L+S)
📑 MERITS OF RANGE
I. It is simple to understand.
II. It is easy to calculate.
📑DEMERITS OF RANGE
I. It has no sampling stability.
II. It is effected by extreme values.
Range is the simplest measure that it gives quick idea about the spread in data. a large range indicates a wider variability, and a smaller range indicates narrower Spread. (i.e. the data points in dataset are closer together and it has less variability) it indicates less dispersion. the greatest drawback of range is that is too much affected by extreme values.
Examples on Range:
1. Calculate the range of sales revenue for a company over a month.
Day’s: | 1 | 2 | 3 | 4 | 5 | 6 |
Sales Revenue: | 500 | 700 | 600 | 910 | 250 | 800 |
also find coefficient of range.
I.Q. | 60-70 | 70-80 | 80-90 | 90-100 | 100-110 | 110-120 |
Freq. | 7 | 12 | 28 | 42 | 30 | 10 |
Quartile Deviation:
Quartile Deviation id calculated for i. Individual data, ii. Discrete data, iii. Continuous data
i. Individual Data:
Example 1. Calculating the quartile deviation and coefficient of quartile deviation for the following data.
17, 20, 35, 51, 28, 14, 11.
Solution:
for calculating the quartile deviation and coefficient of quartile deviation firstly arranging the data in ascending in order 11, 14, 17, 20, 28, 35, 51.
then for calculating quartile deviation is calculated as
Quartile Deviation = (Q3 – Q1)/2
where Q1 = Size of {(n+1)/4}th item.
and Q3 = Size of {3(n+1)/4}th item.
Q1 = Size of {(n+1)/4}th item. = size of {(7+1)/4} th item. = size of (8/4) th observation
Q1 = Size of 2 nd observation = 14
Q1 = 14
Q3 = Size of {3(n+1)/4}th item. = Size of {3(7+1)/4}th item. = Size of {3(8)/4}th item.
Q3 = size of (3x 2) th observation = size of 6 th observation
Q3 = 35.
Quartile Deviation = (Q3 – Q1)/2 = (35-14)/2 = 21/2
.Quartile Deviation = 10.5
Coefficient of Quartile Deviation = (Q3 – Q1)/ (Q3 + Q1)
Coefficient of Quartile Deviation = 21/ 49 = 0.4285
Coefficient of Quartile Deviation = 0.4285
therefore the Coefficient of Quartile Deviation is0.4285 and Quartile Deviation is 10.5
ii. For Discrete Distribution
Example 2. Calculating the quartile deviation and coefficient of quartile deviation for the following data.
Marks | 20 | 30 | 40 | 50 | 60 |
No. of Students | 2 | 13 | 7 | 8 | 1 |
Solution: firstly we arranging the data in ascending order and adding cumulative frequency column.
Marks | No. of Students F | Cumulative Frequency C.F. |
20 | 2 | 2 |
30 | 13 | 15 |
40 | 7 | 22 |
50 | 8 | 30 |
60 | 1 | 31 |
Q1 = Size of {(n+1)/4}th item.
and Q3 = Size of {3(n+1)/4}th item.
Q1 = Size of {(n+1)/4}th item. = size of {(31+1)/4} th item. = size of (32/4) th observation
Q1 = Size of 8 th observation = 30
because 8 th observation in corresponding to 30 marks i.e. 1to 15 observation (means 15 students have marks less than or equal to 30)corresponding to 30 and 8 is lies between 1 to 15
Q3 = Size of {3(n+1)/4}th item. = Size of {3(31+1)/4}th item. = Size of {3(32)/4}th item.
Q3 = Size of 24 th observation = 50
. because 30students have marks less than or equal to 50 then 24 th number student have mark 50 ( because 22 students have marks less than or equal to 40 therefore 23 have mark 50)
Quartile Deviation = (Q3 – Q1)/2 = (50-30) /2 = 10
Quartile Deviation is 10
Coefficient of Quartile Deviation = (Q3 – Q1)/ (Q3 + Q1)
Coefficient of Quartile Deviation = 20/ 80 = 0.25
Coefficient of Quartile Deviation = 0.25
therefore the Quartile Deviation is 10 and Coefficient of Quartile Deviation is 0.25
iii. For Continuous Distribution:
Example 3. Calculating the quartile deviation and coefficient of quartile deviation for the following data.
Marks | Frequency |
60-70 | 2 |
70-80 | 7 |
80-90 | 12 |
90-100 | 28 |
100-110 | 42 |
110-120 | 36 |
120-130 | 18 |
130-140 | 10 |
140-150 | 3 |
150-160 | 2 |
Solution: firstly we arranging the data in ascending order and adding cumulative frequency column.
Marks | Frequency | C.F. |
60-70 | 2 | 2 |
70-80 | 7 | 9 |
80-90 | 12 | 21 |
90-100 | 28 | 49 |
100-110 | 42 | 91 |
110-120 | 36 | 127 |
120-130 | 18 | 145 |
130-140 | 10 | 155 |
140-150 | 3 | 158 |
150-160 | 2 | 160 |
Total | 160 |
Q1 = Size of {(n)/4}th item.
and Q3 = Size of {3(n)/4}th item.
Q1 = Size of {(n)/4}th item. = size of {(160)/4} th item. = 40 th observation
for 40 th observation is corresponding to class 90-100, and lower limit of first quartile is 90
Q1 = lower limit of first + {([n/4]-C.F.)/f} x i
Where C.F. = cumulative frequency of previous class i.e. C.F. = 21
n/4 = 40
f = frequency of first quartile class i.e. f = 28
i = class width = upper limit - lower limit = 70-60 = 10
Q1 = 90 + {(40-21)/28} x 10
Q1 = 90+6.78 = 96.78
Q3 = Size of {3(n)/4}th item.= 120 th observation
the third quartile class is 110-120, lower limit of third quartile class is 110
C.F. = cumulative frequency of previous class i.e. C.F. = 91
i = class width = upper limit - lower limit = 70-60 = 10
f = frequency of first quartile class i.e. f =36
3[n/4] = 3[160/4] = 120
Q3 = lower limit of first + {(3[n/4]-C.F.)/f} x i
Q3 = 110 + ({120-91}/36) X 10
Q3 = 110 +8.06
Q3 = 118.06
Quartile Deviation = (Q3 – Q1)/2 = (118.06 - 96.78)/2
Quartile Deviation = 10.64
Coefficient of Quartile Deviation = (Q3 – Q1)/ (Q3 + Q1)
Coefficient of Quartile Deviation = 21.28/ 214.84 = 0.0990
Coefficient of Quartile Deviation = 0.0990
therefore the Quartile Deviation is 10.64 and Coefficient of Quartile Deviation is 0.0990
see all three examples to understand how to solved the examples based on the Quartile Deviation for individual, discrete and continuous data. the formula of Quartile Deviation based on the type or nature of data set, used proper formula to calculate Quartile Deviation And it coefficient of Quartile Deviation.
We see the two measures of dispersions Range and Quartile Deviation, they both measure of dispersion not based on all observations, hence it is not correctly measure the how far the values from the average. therefore we use new measure of dispersion that based on the all observations that is Mean Deviation hence it is superior than Range and Quartile Deviation.
Mean Deviation is Defined as the arithmetic mean of the absolute Deviation of all the values from it central values,(central value mean measure of central tendency i.e. mean , median and mode). but we know that the sum of deviation taken from the median is minimum. so generally the deviation is taken from median. it is called Mean Deviation taken from Median, but in some cases the deviation is taken from Mean or Mode then it is called the Mean Deviation taken from Mean OR Mode. it denoted as M.D.
it is defined as Mean Deviation = (1/n) x ∑(|xi – Median| ) if deviation taken from median.
Mean Deviation = (1/n) x ∑(|xi – Mean| ) if deviation taken from Mean.
Mean Deviation = (1/n) x ∑(|xi – Mode| ) if deviation taken from Mode.
where n is total number of observation in data set.
xi be the observations i = 1, 2 , ...............n
∑ is summation symbol
the relative measure corresponding to Mean Deviation is called coefficient of Mean Deviation. and it is given as
Coefficient of Mean Deviation = ( Mean deviation ) / ( Median)
📑 MERITS OF M.D.
I. It is simple to understand.
II. It is easy to calculate.
III. It is based on all observations.
IV. It is Less affected by end value.
📑DEMERITS OF M.D.
I. It is not used for further calculations.
For calculating the Mean Deviation Follow these Steps.
i. First we finding the Mean of Data set by summing the all observations and dividing by total number of observations.
ii. for calculating the Mean Deviation we find for each observation the difference between the observation and mean. (if deviation is taken from mean).
iii. Adding the all absolute differences.
iv. Dividing the sum of absolute differences by the total number of observation in the data set.
it is Given as Mean Deviation = (1/n) x ∑(|xi – Median| ) if deviation taken from median.
If the Outliers are present in data set and the distribution is not symmetric in that case the Mean Deviation is used as alternative to Standard Deviation.
Mean Deviation is used in certain cases, but it is less commonly used as compared to other measures of dispersions such as the Standard Deviation or variance. the choice of the measure to use is depending on the specific requirements of the analysis and the nature of the data set.
The Mean Deviation is simple than other measure of dispersions. it is directly measure the average of deviation taken from the mean and it can be easily understood and easily interpretable.
Examples.
Example. 1. Calculate Mean Deviation and it coefficient for the following data.
Price in Rs: | 150 | 512 | 240 | 270 | 300 | 240 | 180 |
Answer: we know that for finding mean deviation firstly we calculate mean any one measure of central tendency i.e. Mean, Median, Mode then we calculating the Mean Deviation if deviation taken from mean or median or mode.
Price in Rs: | |xi –Mean| | |
150 | 120.2857 | |
512 | 241.7143 | |
240 | 30.2857 | |
270 | 0.2857 | |
300 | 29.7143 | |
240 | 30.2857 | |
180 | 90.2857 | |
Total | 542.8571 | |
∑|xi – Mean| = 542.8571
Mean Deviation = (1/n) x ∑(|xi – Mean| )
Mean Deviation = (1/7) x 542.8571
Mean Deviation = 77.5510
coefficient of M.D. = 77.5510 / 270.2857
Coefficient of M.D. = 0.2869
therefore the Mean Deviation = 77.5510 and coefficient of M.D. = 0.2869
Example. 2. Calculate Mean Deviation and it coefficient for the following data.
X: | 10 | 15 | 20 | 25 | 30 |
F: | 5 | 4 | 10 | 8 | 7 |
X: | F: | F x X | |xi – Mean| | F x [|xi – Mean|] |
10 | 5 | 50 | 11.17645 | 55.88225 |
15 | 4 | 60 | 6.17645 | 24.7058 |
20 | 10 | 200 | 1.17645 | 11.7645 |
25 | 8 | 200 | 3.82355 | 30.5884 |
30 | 7 | 210 | 8.82355 | 61.76485 |
Total | 34 | 720 | 31.17645 | 184.7058 |
Class: | 10-20 | 20-30 | 30-40 | 40-50 | 50-60 | 60-70 |
Frequency: | 4 | 6 | 5 | 10 | 7 | 1 |
Class: | Frequency F | Mid-Point M | FM | |xi – Mean| | F x [|xi – Mean|] |
20-Oct | 4 | 15 | 60 | 23.9393 | 95.7572 |
20-30 | 6 | 25 | 150 | 13.9393 | 83.6358 |
30-40 | 5 | 35 | 175 | 3.9393 | 19.6965 |
40-50 | 10 | 45 | 450 | 6.0607 | 60.607 |
50-60 | 7 | 55 | 385 | 16.0607 | 112.4249 |
60-70 | 1 | 65 | 65 | 26.0607 | 26.0607 |
Total | 33 | | 1285 | 90 | 398.1821 |
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Calculate C.V.
Marks |
0-10 |
10-20 |
20-30 |
30-40 |
40-50 |
50-60 |
F |
17 |
27 |
36 |
47 |
24 |
12 |
Solution:
Marks |
F |
mid-point m |
fm |
fm^2 |
0-10 |
17 |
5 |
85 |
425 |
10 - 20 |
27 |
15 |
405 |
6075 |
20-30 |
36 |
25 |
900 |
22500 |
30-40 |
47 |
35 |
1645 |
57575 |
40-50 |
24 |
45 |
1080 |
48600 |
50-60 |
12 |
55 |
660 |
36300 |
Total |
163 |
|
4775 |
171475 |
mean |
29.29447853 |
|||
S.D. = |
13.92214548 |
C.V.
= (S.D. / Mean) x 100
C.V.
= ( 13.92214548 / 29.29447853) x 100
C.V.
= 0.4752 X 100
C.V.
= 47.52%
Standard Deviation
We see that some measures of dispersion include Range, Quartile Deviation, and Mean Deviation. However, these measures are not based on all the observations in a dataset, making them less reliable. Among all the measures of dispersion, Standard Deviation stands out as the most reliable and important measure. Standard Deviation is based on all observations in a dataset, making it more reliable than any other measure of dispersion. It is defined as the square root of the arithmetic mean of the square of deviations from the mean, often referred to as root mean square deviation. It is denoted as σ (Sigma) and written as S.D.
Standard Deviation Formula:
S.D. = σ = √((∑(xi - x̄)²) / n) = Square-root of [∑(xi - x̄)² / n]
OR
S.D. = σ = √((∑(xi²) / n) - (x̄)²)
Where xi is the ith observation (i = 1, 2, ..., n), and x̄ is the arithmetic mean of the observations or data.
Merits of Standard Deviation (S.D.)
- Easy to define: It is rigidly defined and simple to define.
- Based on all observations: It considers all observations in the dataset, making it responsive to changes in data.
- Sampling stability: It is less affected by sampling fluctuations compared to other measures of dispersion.
- Use in mathematical calculations and analysis.
- Reliable compared to other measures of dispersion.
Demerit of Standard Deviation (S.D.)
- Not always simple to understand and calculate.
Variance
The square of Standard Deviation is called Variance and is denoted as σ².
Variance Formula:
Variance (σ²) = (∑(xi - x̄)² / n) OR (∑(xi²) / n - (x̄)²)
Coefficient of Variation
The Coefficient of Variation (C.V.) is a measure that expresses variability as a percentage. It is used for comparing the variability of different groups and is calculated as:
Coefficient of Variation (C.V.) = ((S.D.) / Mean) x 100
The Coefficient of Standard Deviation is similar but not expressed as a percentage.
Difference between Variance and Standard Deviation
Variance measures how much the observations differ from the mean, and it is calculated by summing the squared differences and dividing by the number of observations. Standard Deviation is the square root of Variance and measures how much the observations spread from the mean, using the same units as the data. The key difference is that Variance measures the average squared distance from the mean, while Standard Deviation measures variability in the same units as the data.
the standard deviation is zero if all observations are equal, it is always positive and positive although the values are negative.
Standard Deviation and Variance Calculation for Individual Data
Calculation Method 1:
For calculating standard deviation and variance, we use the following formula:
S.D. = σ = √((∑((xi-x̄)2))/n)
Variance = σ2 = (∑((xi-x̄)2))/n
Example 1:
Calculate the standard deviation and variance of the following data:
52, 57, 59, 63, 68, 45, 59, 47, 57, 50, 60, 66, 40, 48, 54.
Answer:
Values (x) | (x-x̄) | (xi-x̄)2 |
---|---|---|
52 | -3 | 9 |
57 | 2 | 4 |
59 | 4 | 16 |
63 | 8 | 64 |
68 | 13 | 169 |
45 | -10 | 100 |
59 | 4 | 16 |
47 | -8 | 64 |
57 | 2 | 4 |
50 | -5 | 25 |
60 | 5 | 25 |
66 | 11 | 121 |
40 | -15 | 225 |
48 | -7 | 49 |
54 | -1 | 1 |
Total ∑x = 825
Total ∑((xi-x̄)2) = 892
Total number of observations (n) = 15
Mean (x̄) = (∑x)/n = 55
Standard Deviation (S.D.) = σ = √(∑((xi-x̄)2)/n) = √(892/15) = 7.7115
Variance (σ2) = (∑((xi-x̄)2)/n = 59.4672
Calculation Method 2:
For calculating standard deviation and variance using the second formula:
S.D. = σ = √((∑(xi2)/n)-(x̄)2)
Variance = σ2 = (∑(xi2)/n)-(x̄)2
Example 1:
Calculate the standard deviation and variance of the following data:
52, 57, 59, 63, 68, 45, 59, 47, 57, 50, 60, 66, 40, 48, 54.
Answer:
Values (x) | x2 |
---|---|
52 | 2704 |
57 | 3249 |
59 | 3481 |
63 | 3969 |
68 | 4624 |
45 | 2025 |
59 | 3481 |
47 | 2209 |
57 | 3249 |
50 | 2500 |
60 | 3600 |
66 | 4356 |
40 | 1600 |
48 | 2304 |
54 | 2916 |
Total ∑x = 825
Total ∑(x2) = 46267
Total number of observations (n) = 15
Mean (x̄) = (∑x)/n = 55
Standard Deviation (S.D.) = σ = √(∑(x2)/n-(x̄)2) = √(46267/15-(55)2) = 7.7115
Variance (σ2) = (∑(x2)/n-(x̄)2) = 59.4672
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