Measures of Dispersion
Measures of Dispersion
Measures of Dispersion
DISPERSION
Mani N
Assistant Professor of Statistics
PG & Research Department of Mathematics
Sri Ramakrishna College of Arts & Science, Coimbatore
MEASURES OF DISPERSION
• Dispersion may define as the extent of scattered ness of items around a measure of central
tendency .
• A measure of Dispersion is defined to demonstrate the extent to which the individual measures
differ an average from the mean or any other positional average.
DEFINE: MEASURES OF DISPERSION
• The measures of dispersion which are • This measure of dispersion are obtained as rations or
expressed in terms of the original unit of a %’s thus pure number independent of the units of
series, are termed as absolute measures. Such measurements. For comparing the variability of the 2
distributions instead of the absolute measure of
measures are not suitable for comparing the
dispersion. It is otherwise called as co-efficient of
variability of 2 distributions expressed in
variation.
different unit of measures.
• For Ex: we are given the monthly income of 5
• For Ex: height in inches & weight in KG. 2 series
workers such as 880,725,575,925 & 500, here
compared only if the absolute measures of dispersion
difference between max and min income is of each series is expressed as a ratio or percentage
925-500=425 and this is called absolute of average
measure of dispersion
VARIOUS METHODS OF MEASURING
DISPERSION OR VARIATIONS
• The following are important methods of studying dispersion
1. Range.
2. Quartile Deviation (QD).
3. Mean Deviation (MD).
4. Standard Deviation (SD).
5. Lorenz Curve.
RANGE
Merits Demerits
It is It
• Easy to understand and easy to calculate. • Does not tell anything about the distribution
values in the series relating to measures of
• Most commonly used measures of dispersion
central tendency.
in everyday living. Questions like.
• Cannot be computed when distribution has
• Computation is simple and quick
open –end classes.
• Does not take in to account the entire data.
STANDARD DEVIATION (SD)
• The most universally used and the most useful measures of dispersions is S.D or root mean
square deviation or mean error. Karl Pearson introduced this concept in 1893.
• It measures the absolute dispersion or variability of a distribution. It is defined as positive square
root of the A.M of the deviation of the given observations from their A.M
• It provides accurate results.
• It is denoted as SIGMA ( ) .
ALGEBRAIC PROPERTIES OF S.D
• The values of S.D of a series remain unchanged if each variate value is increase or decrease by
the some constant value(That is S.D is increase of change of origin).
• If the value of the variables are multiplied or divided by a constant, the S.D of the new
observations can be obtained by multiplying or dividing the initial S.D by the same constant.(i.e.
S.D is the effected by change of scale).
• S.D is the least root mean square deviation. i.e. root mean square deviation of values from any
value will be greater than that from mean.
MERITS & DEMERITS
Merits Demerits
• It can be used for comparing the extent variation. • Difficult to calculate.
The degree of uniformity of 2 or more series.
• It gives or a series to extreme items and less
• It is basis for measuring the co-efficient of
to those, which are near to the mean.
correlation and deriving sampling statistical
information’s. • It is absolute measure of dispersion and
cannot be used for comparing variability 2 or
• Judging the representative ness of the mean .if 2
more distributions
or more series having approximately the same
mean, the smaller than the S.D the more
representative is the Mean
FORMULA – S.D
CO-EFFICIENT OF VARIATION (C .V)
• What ever it is desired to compare the dispersion of 2 or more series, which are not expressed in
the same unit. We will have to compute co-efficient of dispersion. S.D is an absolute
measurement of dispersion.
• S.D must be converted in to relative measures of dispersions for the purpose of composition. The
relative measure is known as the co –efficient of variation.
• Karl Pearson develops this measure.
• Co-efficient of Variation (C.V)
C.V =
REFERENCES
• Navnitham Pa : “Business Mathematics and Statistics (B.Com)” S. Chand & Co. Ltd reprint 2017.