Introduction
The main theme of this chapter is dispersion or
variability, which provides us one more step in
increasing our understanding of the pattern of
the data.
There are four measures of dispersion:
1. The range
2. The interquartile range or the quartile deviation
3. The mean deviation
4. The standard deviation
All these are mathematical methods
2
The Range
Range is the difference between the maximum
value and the minimum value of data.
In a frequency distribution, range is calculated
by taking the difference between the upper limit
of the highest class and the lower limit of the
lowest class.
The Coefficient of range is calculated by the formula:
L-S
L+S
3
Limitations
1. It is based only on two items and does not cover
all the items in a distribution.
2. It is subject to wide fluctuations from sample to
sample based on the same population.
3. It fails to give any idea about the pattern of
distribution.
4. Finally, in the case of open-ended distributions,
it is not possible to compute the range.
4
Advantages
1. It is mainly used in situations where one wants to
quickly have some idea of the variability of a set of
data.
2. When the sample size is very small, the range is
considered quite adequate measure of the
variability. Thus, it is widely used in quality
control where a continuous check on the
variability of raw materials or finished products is
needed.
3. The range is also a suitable measure in weather
forecast. The meteorological department uses the
range by giving the maximum and the minimum
temperatures.
5
The Interquartile Range or the Quartile
Deviation
Interquartile range = Q3 – Q1
Symbolically, interquartile range = Q3 – Q1
Q3 – Q1
Coefficient of QD =
Q3 – Q1
6
Merits of Quartile Deviation
1. As compared to range, it is considered a
superior measure of dispersion.
2. In the case of open-ended distribution, it is
quite suitable.
3. Since it is not influenced by the extreme
values in a distribution, it is particularly
suitable in highly skewed or erratic
distributions.
7
Limitations of Quartile Deviation
1. Like the range, it fails to cover all the items in
a distribution.
2. It is not amenable to mathematical
manipulation.
3. It varies widely from sample to sample based
on the same population.
4. Since it is a positional average, it is not
considered as a measure of dispersion.
8
The Mean Deviation
∑ x
MD = n
Where
MD = mean deviation
|x| = deviation of an item from the
mean,* ignoring positive and
negative signs
N = the total number of observations.
9
Merits of Mean Deviation
1. A major advantage of mean deviation is that it is
simple to understand and easy to calculate.
2. It takes into consideration each and every item in
the distribution. As a result, a change in the
value of any item will have its effect on the
magnitude of mean deviation.
3. The values of extreme items have less effect on
the value of the mean deviation.
4. As deviations are taken from a central value, it is
possible to have meaningful comparisons of the
formation of different distributions.
10
Limitations of Mean Deviation
1. It is not capable of further algebraic treatment.
2. At times it may fail to give accurate results. The
mean deviation gives best results when
deviations are taken from the median instead of
from the mean. But in a series, which has wide
variations in the items, median is not a
satisfactory measure.
3. Strictly on mathematical considerations, the
method is wrong as it ignores the algebraic
signs when the deviations are taken from the
mean.
11
The Standard Deviation
∑ (x )
Var (X) =
N
It is also written as
∑ (xi )2
σ 2
=
N
If a distribution relates to income of families, then the variance is (Rs)2 and not rupees. Similarly, if another distribution pertains to marks
of students, then the unit of variance is (marks)2. To overcome this inadequacy, the square root of variance is taken, which yields a better
measure of dispersion known as the standard deviation.
12
The Standard Deviation
∑ (xi )2
σ 2
=
N
It is also written as
∑ x i2
∑ xi2
σ 2
= N
N
13
Combined Standard Deviation
14
Uses of Standard Deviation
It enables us to determine as to how far
individual items in a distribution deviate from its
mean. In a symmetrical, bell-shaped curve such
as the one given below:
i. about 68 percent of the values in the population
fall within ± 1 standard deviation from the mean.
ii. About 95 percent of the values will fall within ± 2
standard deviations from the mean.
iii. About 99 percent of the values will fall within ± 3
standard deviations from the mean.
15
A Symmetrical Curve
16
Relative Dispersion: The Coefficient of
Variation
Symbolically, CV (coefficient of variation)
σ
= X 100%
17
Standardized Variable, Standard
Scores
The variable Z = (x – x )/s or (x – ) /, which
measures the deviation from the mean in units of
the standard deviation, is called a standardized
variable. Since both the numerator and the
denominator are in the same units, a standardized
variable is independent of units used.
Through this concept of standardized variable,
proper comparisons can be made between
individual observations belonging to two different
distributions whose compositions differ.
Standard score: No. of SD a particular observation
lies above or below the mean 18
