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These are the measures of variability

The document outlines four measures of variability: Range, Interquartile Range (IQR), Variance, and Standard Deviation. Each measure is defined, including its calculation method, usage scenarios, and limitations. The document also provides a summary of when to use each measure based on data characteristics.
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0% found this document useful (0 votes)
6 views

These are the measures of variability

The document outlines four measures of variability: Range, Interquartile Range (IQR), Variance, and Standard Deviation. Each measure is defined, including its calculation method, usage scenarios, and limitations. The document also provides a summary of when to use each measure based on data characteristics.
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© © All Rights Reserved
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These are the measures of variability:

1. Range
2. IQ
3. Variance
4. Std. Deviation

1. Range: The difference between the highest and lowest values


in a dataset.

 Use it when: You need a quick and simple measure of the spread of data. It's easy to
calculate and provides a basic understanding of the data's range.
 Limitations: Highly sensitive to outliers. A single extreme value can drastically inflate
the range, making it less representative of the overall spread.

A. Range
Step 1: Find the highest value.

The highest value in the dataset {2, 4, 6, 8, 10} is 10.

Step 2: Find the lowest value.

The lowest value in the dataset {2, 4, 6, 8, 10} is 2.

Step 3: Subtract the lowest value from the highest value.

Range = Highest value - Lowest value = 10 - 2 = 8

Therefore, the range of the dataset is 8. This simply tells us the


spread of the data.

2. Interquartile Range (IQR): The difference between the third


quartile (Q3) and the first quartile (Q1) of a dataset. This
measures the spread of the middle 50% of the data.

 Use it when: You want to understand the spread of the middle 50% of your data. This is
particularly useful when dealing with skewed data or data containing outliers, as the IQR
is less affected by extreme values.
 Limitations: Doesn't provide information about the spread of the entire dataset, only the
middle 50%.

B. Interquartile Range (IQR)


Step 1: Order the data (already ordered).

Our data is already ordered: {2, 4, 6, 8, 10}


Step 2: Find the median (Q2).

The median is the middle value. In this case, the median is 6.

Step 3: Find the first quartile (Q1).

Q1 is the median of the lower half of the data. The lower half is {2,
4}. The median of {2, 4} is (2+4)/2 = 3.

Step 4: Find the third quartile (Q3).

Q3 is the median of the upper half of the data. The upper half is {8,
10}. The median of {8, 10} is (8+10)/2 = 9.

Step 5: Calculate the IQR.

IQR = Q3 - Q1 = 9 - 3 = 6

Therefore, the IQR is 6. This tells us the spread of the middle 50%
of the data.

C. Variance: The average of the squared deviations from the


mean. It tells us how spread out the data is around the mean.

 Use it when: You need a measure of the average squared deviation from the mean. It's a
key component in many statistical calculations and helps understand how spread out the
data is around the mean.
 Limitations: Difficult to interpret directly due to being in squared units. The standard
deviation is often preferred for easier interpretation.

Step 1: Calculate the mean (average).

Mean = (2 + 4 + 6 + 8 + 10) / 5 = 6

Step 2: Subtract the mean from each data point and square
the result.

(2-6)² = 16
(4-6)² = 4
(6-6)² = 0
(8-6)² = 4
(10-6)² = 16

Step 3: Sum the squared differences.

16 + 4 + 0 + 4 + 16 = 40

Step 4: Divide the sum by (n-1), where n is the number of


data points (for sample variance).
Variance = 40 / (5 - 1) = 10

Therefore, the sample variance is 10. This is a measure of the


average squared deviation from the mean.

D. Standard Deviation: The square root of the variance. It


gives us a measure of the typical deviation from the mean.

 Use it when: You need a measure of the typical deviation from the mean. It's the most
commonly used measure of variability and provides a clear understanding of how data
points are distributed around the mean.
 Limitations: Sensitive to outliers like the range, but less so than the range.

Here's a simple way to remember when to use each measure:

 Range: Quick and dirty estimate of spread


 IQR: Focus on the middle 50%
 Variance: Underlying calculation for other measures
 Standard Deviation: The most common and interpretable measure of spread

Choosing the right measure depends on your specific analysis:

 Outliers: If you're concerned about outliers, use the IQR or standard deviation.
 Data distribution: If you're dealing with skewed data, the IQR might be more
informative than the standard deviation.
 Further calculations: Variance is often used as a building block for other statistical
calculations.

Standard Deviation
Step 1: Calculate the variance (we already did this: 10).

Step 2: Take the square root of the variance.

Standard Deviation = √10 ≈ 3.16

Therefore, the sample standard deviation is approximately


3.16. This gives us a measure of the typical spread of the data
around the mean, in the same units as the original data.

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