STASTIC
STASTIC
The dispersion
Understanding Dispersion
The term “dispersion” refers to how dispersed a set of data is. The
measure of dispersion is always a non-negative real number that
starts at zero when all the data is the same and rises as the data
gets more varied. The homogeneity or heterogeneity of the
scattered data is defined by dispersion measures. It also refers to
how data differs from one another.
Measures of Dispersion
As the name suggests, the measure of dispersion shows the
scatterings of the data. It tells the variation of the data from one
another and gives a clear idea about the distribution of the data.
The measure of dispersion shows the homogeneity or the
heterogeneity of the distribution of the observations.
• Arithmetic Mean
• Median and Mode
• Partition Values or Fractiles
• Harmonic Mean and Geometric Mean
• Range and Mean Deviation
• Quartiles, Quartile Deviation and Coefficient of Quartile
Deviation
• Standard deviation and Coefficient of Variation
Suppose you have four datasets of the same size and the mean is
also the same, say, m. In all the cases the sum of the observations
will be the same. Here, the measure of central tendency is not
giving a clear and complete idea about the distribution for the four
given sets.
1. Range
2. Deviation from the median
3. Deviation from the mean
Range
Range refers to the difference between each series’ minimum and
maximum values. The range offers us a good indication of how
dispersed the data is, but we need other measures of variability to
discover the dispersion of data from central tendency
measurements. A range is the most common and easily
understandable measure of dispersion. It is the difference between
two extreme observations of the data set. If X max and X min are the
two extreme observations then
Merits of Range
Demerits of Range
Quartile Deviation
Q = ½ × (Q3 – Q1)
Mean Deviation
Mean deviation is the arithmetic mean of the absolute deviations
of the observations from a measure of central tendency. If x1, x2,
… , xn are the set of observation, then the mean deviation of x
about the average A (mean, median, or mode) is
Here, xi and fi are respectively the mid value and the frequency of
the ith class interval.
Standard Deviation
A standard deviation is the positive square root of the arithmetic
mean of the squares of the deviations of the given values from
their arithmetic mean. It is denoted by a Greek letter sigma, σ. It is
also referred to as root mean square deviation. The standard
deviation is given as
Coefficient of Dispersion
Whenever we want to compare the variability of the two series
which differ widely in their averages. Also, when the unit of
measurement is different. We need to calculate the coefficients of
dispersion along with the measure of dispersion. The coefficients
of dispersion (C.D.) based on different measures of dispersion are
Coefficient of Variation
For Company A
Comparing (i), and (ii), we see that Company A has a larger wage
bill.
For Company A
For Company B
The average daily wages for both the companies taken together