Dr.Banibrata Roy F.Y.B.A.

Semester 2 ,Unit-III

MEASURES OF DISPERSION

- Definition and Measures of Central Dispersion
- Formula
- Properties of each measure.

DEFINITION

The amount of deviation or scattered-ness of the observations from an average.

MEASURES

1. ABSOLUTE Measure: Depends on the unit of variable.
a) Range
b) Mean Deviation
c) Standard Deviation
d) Quartile Deviation or Semi Inter Quartile Range

2. RELATIVE Measure: Units free, difficult to compute and compares two or more distribution.
a) Coefficient of Range
b) Coefficient of Mean Deviation
c) Coefficient of Variation
d) Coefficient of Quartile Deviation.










































Dr.Banibrata Roy F.Y.B.A. Semester 2 ,Unit-III

FORMULA
NAME OF
MEASURE
INDIVIDUAL DATA DISCRETE /
UNGROUPED DATA
GROUPED DATA
RANGE




L S where,
L = Largest Value
S = Smallest Value
L S where,
L = Largest Value of
Variable x
S = Smallest Value x

L S where,
L = Upper boundary of
last class.
S = Lower boundary of
first class
COEFFICIENT OF
RANGE

100 x
S L
S - L
+









MEAN DEVIATION
ABOUT A



n
| A -
i
x |



N
| A -
i
x |
i
f

N
| A -
i
m |
i
f

where, m
i
= Mid Value of
i
th
Class
COEFFICIENT OF
M.D. ABOUT A

100 x
A
A
M.D





STANDARD
DEVIATION (o )






COEFFICIENT OF
VARIATION (C.V.)

QUARTILE
DEVIATION (Q.D.)

COEFFICIENT OF
Q.D.


n
2
) x
i
x (


Or

2
n
i
x
-
n
2
i
x
|
|
.
|

\
|





2
Q Q
1 3



100 x
1
Q
3
Q
1
Q -
3
Q
+

N
) x
i
X (
i
f
2



Or









N
2
) x
i
m (
i
f


Or
2
N
i
m
i
f
-
N
2
i
m
i
f
|
|
.
|

\
|













2
N
i
x
i
f
-
N
2
i
x
i
f
|
|
.
|

\
|
100 x
x
o
Dr.Banibrata Roy F.Y.B.A. Semester 2 ,Unit-III


Same as in Individual Data.
PROPERTIES :
RANGE :
1. Quickest to Compute.
2. Based on two observations, it is much affected by extreme values.
3. For y = a + bx, R
Y
= | b |. R
X
.
MEAN DEVIATION :
1. It has Minimum value when deviations are taken from Median.
2. It is based on Absolute deviations only.
3. For y = a + b x , MD
Y
= | b |. MD
X
.
STANDARD DEVIATION :
1. The best and most commonly used measure of dispersion.
2. For any two numbers a and b, o = | a b|
2
3. For first n natural numbers, o =
12
1 - n
2

4. If all variables are constant, o = 0
5. For y = a + bx, o
y
= | b |.o
X
6. Combined S.D., o
C
=
2 1
2
2 2
2
1 1
2
2 2
2
1 1
n n
d n d n n n
+
+ + + o o


d
1
= c 1 x - x
d
2
= c. 2 x - x
7. It has some desirable mathematical properties.
8. If each value of a series is multiplied or divided by a constant, the coefficient of variation
is same as original value.
9. Variance = (S.D)
2

QUARTILE DEVIATION
1. Best for open-end classification.
2. Based on only central fifty percent observations.

2
n
1
n
x
2
n x
1
n
c x
+
+
=
2 1