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L1 - Measures of Variability

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L1 - Measures of Variability

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Swetha
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Unit IV

 Measures of Variation
 Standard Deviation
 Mean and Quartile deviations
 Co efficient of variation
 Simple Correlation
 Coefficient of correlation
 Rank correlation
 Regression lines.
Measures of Variability
• Measures of variability explains how the items are dispersed away from the average
• Measures of central tendency mean, medium and mode are called averages of first order
• Measures of variation are called averages of second order

Purpose of measuring variation

1. To test the reliability of an average


• Variation measure is the only means to test the representative character of an average
• If the scatter is large then average is less reliable
• If the scatter is small then the average is a typical value and more closely represents the
individual values
Purpose of measuring variation

2. To serve as a basis for control of variability


• Measures of dispersion are useful to determine the causes of variation
• In matters of health, variations in body temperature, pulse beat and blood pressure are
basic guides to diagnosis
• Prescribed treatment is designed to control their variation
• In industrial production, efficient operation requires control of quality variation, the
causes of which are sought through inspection and quality control programs
3. To compare two or more series with regard to their variability
• The degree of uniformity or the consistency of data can be found through the study of
measure of dispersion
4. To facilitate as a basis for further statistical analysis
• Measures of dispersion are essential for studying the statistical tools such as
correlation, regression, test of hypothesis, analysis of fluctuations, cost control etc.,
Methods of measuring dispersion

• Range
• Inter-quartile range
• Mean- deviation
• Standard deviation
Range

• It is the simplest measure of dispersion


• Its measure depends upon the extreme items and not on all the items

Range = Largest value-Smallest value

Relative measure of dispersion: R = L-S

LS
Co  efficient of Range
LS
Here, L is the largest value
S is the smallest value
Find the range and co-efficient of range of marks of 7 students from the following data: 27,
30, 35, 36, 38, 40, 43

Answer:

Range = L-S = 43-27 = 16

LS
Co  efficient of Range
LS

LS 43  27 16
Co  efficient of Range    0.23
LS 43  27 70
Uses of Range

• While quoting the prices of shares, bonds, gold etc., on daily basis or yearly basis, the
minimum and the maximum prices are mentioned
• The minimum and the maximum temperature likely to prevail on each day are forecasted

Merits of Range:
• It is simple to understand and easy to calculate.
• It is less time consuming.

Demerits of Range:
• It is not based on each and every item of the distribution.
• It is very much affected by the extreme values
Quartile Deviation (Q.D)

• It is half of the difference between the first and the third quartiles
• It is called as Semi Inter Quartile Range

Q3  Q1
Hence Quartile Deviation (QD ) 
2

Inter Quartile Range  Q3  Q1

Q3  Q1
Hence Semi Inter Quartile Range 
2
Q3  Q1
Coefficient of Quartile Deviation 
Q3  Q1

Uses
• Quartile Deviation is a simple way to estimate the spread of a distribution
about a measure of its central tendency (usually the mean)
• It gives you an idea about the range within which the central 50% of your
sample data lies.
Uses of coefficient of quartile deviation

• The coefficient of quartile deviation (sometimes called the quartile


coefficient of dispersion) allows you to compare dispersion for two or more
sets of data
• If one set of data has a larger coefficient of quartile deviation than another
set, then that data set's interquartile dispersion is greater.
Uses of inter quartile
• The important advantage of interquartile range is that it can be used as a
measure of variability if the extreme values are not being recorded exactly (as
in case of open-ended class intervals in the frequency distribution)
• Other advantageous feature is that it is not affected by extreme values
Practice problem:
In a psychiatric clinic number of patients visited in five months in a particular
year and number cured are given. Calculate Q.D. and coefficient of Q.D.

Number of patients No. cured


visited the hospital
100 5
200 8
400 21
500 12
600 6
Total 52
Solution

Number of No. Cf N  1 52  1
patients visited cured Position of Q1 is   13.25
4 4
the hospital
100 5 5
Q1=13th value+ 0.25(value at 14th position-value at
200 8 13 13th position)
400 21 34
500 12 46 Q1= 200+ 0.25(400-200)
600 6 52 = 200 + 0.25x200
Total 52 =200+50
=250
 N 1  52  1 
Position of Q3 is 3   3   3  13.25  39.75
 4   4 

Q3=39th value+ 0.75(value at 40th position-value at 39th position)


Number of No. Cf
patients visited cured
Q3= 500+ 0.75(500-500) the hospital
= 500 + 0.75x0
=500 100 8 5
200 21 13
400 12 34
500 6 46
600 52 52
Total 52
Q3  Q1 500  250
Hence Quartile Deviation (QD )    125
2 2

Hence, the range within which the central 50% of your sample data lies is 125

Q3  Q1 500  250 250


Coefficient of Quartile Deviation     0.333
Q3  Q1 500  250 750

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