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Business Statistics Lectures UNIT-2 Dispersion

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7 views17 pages

Business Statistics Lectures UNIT-2 Dispersion

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vanshika badlani
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BUSINESS STATISTICS

Unit-2 “ CONCEPT OF DISPRSION AND RANGE’


DR AMIT SHRIVASTAVA
Dispersion
➢Measures of dispersion can be defined as positive real numbers that measures the extent to
which the items/observations vary from some central value.
➢Dispersion is a statistical term that can be used to describe the extent to which data is
scattered. Thus, measures of dispersion are certain types of measures that are used to quantify
the dispersion of data.
➢The value of a measure of dispersion will be 0 if the data points in a data set are the same.
However, as the variability of the data increases the value of the measures of dispersion also
increases.
➢ Dispersion is also known as scatter, spread or variation
Understand with an EXAMPLE
SERIES : 2 ,4 ,9

Find AM of the series

Dispersion :
What is the Use of Dispersion
EXAMPLE OF 3 SERIES –
Series 1 Series 2 Series 3
100 98 1

100 99 2

100 100 3

100 101 4

100 102 490


Types of Measurement
▪The measures of dispersion can be classified into two broad categories.
▪These are absolute measures of dispersion and relative measures of dispersion.
▪Range, variance, standard deviation and mean deviation fall under the category of absolute
measures of deviation. These measures have the same unit as the data that is being scrutinized.
▪Coefficients of dispersion are relative measures of deviation. Such dispersion measures are always
dimensionless.
MEASUREMENT OF DISPERSION
ABSOLUTE MEASUREMENT RELATIVE MEASUREMENTS

RANGE COEFFICIENT OF RANGE

QUARTILE DEVIATION COEFFICIENT OF QUARTILE DEVIATION

MEAN DEVIATION COEFFICIENT OF MEAN DEVIATION

COEFFICIENT OF STANDARD DEVIATION


STANDARD DEVIATION

VARIANCE COEFFICIENT OF VARIANCE


Absolute Measures of Dispersion
These measures usually express variations in a data set with respect to the average of the
deviations of the observations –

Range: Given a data set, the range can be defined as the difference between the maximum
value and the minimum value.
Variance: The average squared deviation from the mean of the given data set is known as
the variance. This measure of dispersion checks the spread of the data about the mean.
Standard Deviation: The square root of the variance gives the standard deviation. Thus, the
standard deviation also measures the variation of the data about the mean.
Quartile Deviation
Quartile Deviation
Formula :
Qd = Q3 - Q1
2
Coefficient of Qd = Q3 - Q1
x 100
Q3 + Q1
Where, Q1 = First Quartile ( Lower Quartile )
Q2 = Second Quartile
Q3 = Third Quartile ( Upper Quartile )
Quartile Deviation
For Individual Series –
Q1 = ( n + 1 ) th term
4
Q3 = 3 ( n + 1) th term
4
i) Individual Series : 5, 9, 20, 35, 40, 3, 10
ii) 18, 25, 8, 15, 30, 5, 40, 20

Ans: 35 & 75%

Ans: (9.75,28.75) (9.5 & 24.67%)


Practical QD MONTH INCOME
JAN 139
FEB 140
Question: Calculate the Quartile Deviation
MARCH 140
for the following data –
APRIL 141
MAY 141
JUNE 142
JULY 142
AUG 143
SEP 143
OCT 144
Ans: 140.25,143.75, 1.75 & 1.23% NOV 144
DEC 145
Quartile Deviation
For Discreet Series –

X f

5 2

9 2

2 1

10 5

15 3 Ans: 2.75 & 28.2%


Question - For Discreet Series
X f

5 6

10 4

15 9

20 5

25 6
Ans: 6.875 & 40.74%
30 2
Quartile Deviation
For Continuous Series –
Qd = Q3 - Q1
2
Coeff. Of Qd = Q3 - Q1
x 100
Q3 + Q1

Where,
Q1 = L + (N/4 – CF) x h
L = Lower Limit
f N =Ʃf
CF = Upper CF
Q2 = L + (3N/4 – CF) f = frequency
xh
f h = class interval
Quartile Deviation – continuous series
Class f

0-10 3

10-20 9

20-30 12

30-40 11 Answers :

40-50 5 Q1 = 19.44
Q2 = 39.5
50-60 6 Qd = 10.05
Co.Qd = 34.07%
Quartile Deviation – continuous series
s Class f

40-49 5

50-59 7

60-69 10

70-79 8 Answers :

80-89 9 Q1 = 57.35
Q2 = 81.16
90-99 3 Qd = 11.9
Co.Qd = 17.19%

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