Measure of Dispersion and

Location

Prof. Gina J. Velasco, EdD

Dispersion

 The difference between the actual value and the

average value.

Measures of Dispersion Measures of Location

Range Quartiles
Average Deviation Deciles
Variance Percentiles
Standard Deviation Midhinge
Interquartile Range
Quartile Deviation
Range

 The difference of the highest value and the lowest

value in the data set.

Example: The daily rates of a sample of eight employees at

GMS Inc. are ₧550, ₧420, ₧560, ₧500, ₧700, ₧670, ₧860,
₧480. Find the range.

Solution:

420, 480, 500, 550, 560, 670, 700, 860

HV = ₧860 and LV = ₧420

Range = HV – LV = 860 – 420 = 440

Average Deviation

 It is the absolute difference between the element and a

given point.

3 2 1 0 1 2 3
Mean
Average Deviation for Ungrouped Data

Individual
value Sample
mean

AD 
 / X  /
N
Average Population
Deviation

Sample AD: AD 
 / X X/
n
Average Deviation for Grouped Data

Frequency
Individual
value Sample
mean

AD 
 f / X X/
N
Average Population
Deviation

Sample AD: AD 
 f / X X/
n
Example 1 for Average Deviation

The daily rates of a sample of eight employees at GMS Inc. are

₧550, ₧420, ₧560, ₧500, ₧700, ₧670, ₧860, ₧480. Find the
average deviation.

Solution:
Compute for the mean

X
 X 550  420  560  500  700  670  860  480

n 8
4 ,740
  592 . 50
8
Solution: AD Ungrouped Data

550 – 592.5

X X X / X X/
550 –42.5 42.5
420 –172.5 172.5
560 –32.5 32.5
500 –92.5 92.5
700 107.5 107.5
670 77.5 77.5
860 267.5 267.5
480 –112.5 112.5
 X  4 ,740  (X  X)  0  / X  X /  905

AD 
 / X  X / 905
  113 . 125  113 . 13
n 8
Example: AD Grouped Data

The data below shows the frequency distribution of the

amounts of electric consumption of a typical household in
Batangas City for the month of January 2009. Find the average
deviation.

Amount of Electric Number of Families

Bill
700 – 849 2
850 – 999 9
1,000 – 1,149 15
1,150 – 1,299 9
1,300 – 1,499 5
Solution: AD Grouped Data

Midpoint

Class Limits f X fX
700 – 849 2 774.5 1,549.00
850 – 999 9 924.5 8,320.50

Add
1,000 – 1,149 15 1,074.5 16,117.50
1,150 – 1,299 9 1,224.5 11,020.50
1,300 – 1,499 5 1,374.5 6,872.50
40  fX  43 ,880

X
 fX 43 ,880
  1,097
n 40
Solution (continuation)

774.5 – 1,097 f / X  X /Mean

Class Limits f X X X / X X/ f / X X/
700 – 849 2 774.5 –322.5 322.5 645.0
850 – 999 9 924.5 –172.5 172.5 1,552.5
1,000 – 1,149 15 1,074.5 –22.5 22.5 337.5
1,150 – 1,299 9 1,224.5 127.5 127.5 1,147.5
1,300 – 1,499 5 1,374.5 277.5 277.5 1,387.5
40  f / X  X /  5 ,070

AD 
 f / X  X / 5 ,070
  126 . 75
n 40
Standard Deviation

 It is a statistical term that provides a good

indication of volatility.
Measure of
risk
 It measures how widely values are dispersed from
the average.

 It is calculated as the square root of variance.

Range Rule of Thumb

 It is used to approximate or to give a rough estimate of the

standard deviation

Standard range
Deviation s 
4

Example: The daily rates of a sample of eight employees at

GMS Inc. are ₧550, ₧420, ₧560, ₧500, ₧700, ₧670, ₧860,
₧480. Find the range.

Solution:
range HV  LV 860  420 440
s      110
4 4 4 4
Variance

 It is a mathematical expectation of the average

squared deviations from the mean.

Sample Variance:
For ungrouped data For grouped data

s 2

 ( X  X) 2
s2 
 f ( X  X) 2

n 1 n 1
or or
 X2

(  X) 2
(  fX) 2

2
s  n
2
 fX2

n
n 1 s 
n 1
Variance

For ungrouped data For grouped data

s
 (X  X) 2
s
 f ( X  X) 2

n 1 n 1
or or
(  X) 2


(  fX) 2

X  n
2
2 fX 
s n
s
n 1 n 1
Population Variance and SD

Individual
Sample Variance value

Sample Sample mean

Variance
s2 
 ( X  X) 2

n 1
Sample
Population
Sample Standard Deviation
Sample SD

s
 ( X  X) 2

n 1
Example: SD & Variance Ungrouped Data

The daily rates of a sample of eight employees at GMS Inc. are

₧550, ₧420, ₧560, ₧500, ₧700, ₧670, ₧860, ₧480. Find the
average deviation.

Solution:
Compute for the mean

X
 X 550  420  560  500  700  670  860  480

n 8
4 ,740
  592 . 50
8
Solution 1: SD & Variance Ungrouped Data

X X X ( X  X)2
550 –42.5 1,806.25
550 – 592.5
420 –172.5 29,756.25
560 –32.5 1,056.25
500 –92.5 8,556.25
700 107.5 11,556.25
670 77.5 6,006.25
860 267.5 71,556.25
480 –112.5 12,656.25
 X  4 ,740  (X  X)  0  / X  X /  142 ,950
s2 
 ( X  X) 2


142 , 950
 20 , 421 . 43
n 1 8 1

s
 ( X  X) 2


142 , 950
 20 , 421 . 43  142 . 90
n 1 8 1
Solution 2: SD & Variance Ungrouped Data

X X 2
 X2

(  X) 2

550 302,500 2
s  n
n 1
420 176,400
560 313,600 ( 4 ,740 ) 2
2 ,951 , 400 
500 250,000  8
700 490,000 8 1
670 448,900 2 ,951 , 400  2 ,808 , 450
860 739,600 
7
480 230,400
 20 , 421 . 43
 X  4 ,740   2 ,951 , 400
X2

 X2

(  X) 2

s n  20 , 421 . 43  142 . 90
n 1
Example: Variance & SD Grouped Data

Using the example provided in Chapter 2 on SJS Travel Agency.

Determine the variance and standard of the frequency distribution
on the ages of 50 people taking travel tours.

Class Limits Frequency

18 – 26 3
27 – 35 5
36 – 44 9
45 – 53 14
54 – 62 11
63 – 71 6
72 – 80 2
Solution 1:

Class Limits f X fX
18 – 26 3 22 66
27 – 35 5 31 155
36 – 44 9 40 360
45 – 53 14 49 686
54 – 62 11 58 638
63 – 71 6 67 402
72 – 80 2 76 152
Total 50  fX  2,459

X
 fX 2 , 459
  49 . 18
n 50
Solution 1 (continuation)

Class Limits f X X X ( X  X) 2 f ( X  X)2

18 – 26 3 22 –27.18 738.7534 2,216.2572
27 – 35 5 31 –18.18 330.5142 1,652.5620
36 – 44 9 40 –8.18 84.2724 758.4516
45 – 53 14 49 –0.18 0.0324 0.4536
54 – 62 11 58 8.82 77.7924 855.7164
63 – 71 6 67 17.82 317.5524 1,905.3144
72 – 80 2 76 26.82 719.3124 1,438.6248
Total 50  f (X  X) 2
 8 ,827 . 3800

Variance:
2
s 
 f ( X  X) 2


8 ,827 . 38
 180 . 15
n 1 50  1

Standard Deviation: s
 f (X  X) 2

 180 . 15  13 . 42
n 1
Solution 2:

Class Limits f X fX fX2

18 – 26 3 22 66 66
27 – 35 5 31 155 155
36 – 44 9 40 360 360
45 – 53 14 49 686 686
54 – 62 11 58 638 638
63 – 71 6 67 402 402
72 – 80 2 76 152 152
Total 50  fX 2 , 459  fX 2
129 ,761

(  fX) 2 (2 , 459 ) 2
2
 fX 2

n
129 ,761 
50 129 ,761  120 , 933 . 92
s     180 . 15
n 1 50  1 49

(
 fX2  n fX) 2

s  180 . 15  13 . 42
n 1
Population Variance and SD
Individual
Population Variance value

Population Population mean

Variance 2
 
 ( X   ) 2

N
Population

Population Standard Deviation

Population
SD

 ( X   ) 2

N
Example for Variance & SD

The monthly incomes of the five research directors of Recoletos

schools are: ₧55,000, ₧59,500, ₧62,500, ₧57,000, and ₧61,000.
Find the variance and standard deviation.

Solution:
Compute for the mean


 X 55 ,000  59 ,500  62 ,500  57 ,000  61,000

N 5
295 ,000
  59 ,000
5
Solution for Variance & SD

X X  ( X  ) 2
55,000 –4,000 16,000,000
59,500 500 250,000
62,500 3,500 12,250,000
57,000 –2,000 4,000,000
61,000 2,000 4,000,000
 X  295 ,000  (X  )  0  (X  )  36 ,500 ,000
2

2
 
 ( X   ) 2


36 ,500 ,000
 730 ,000
N 5


 ( X   ) 2

 730 ,000  2 ,701 . 85

N