Module 1 LESSON 3: MEASURES OF DISPERSION (VARIABILITY)

Measures of Dispersion indicates the extent to which individual items in a series are
scattered about an average. In most cases, it is used to describe how closely or how different
the observations in a given data set. For example, we want to know how variable the heights a
specific variety of coconuts planted in different regions of the country or can we say that the
blood pressure of 100 selected males with diabetes is somehow close to each other?

Furthermore, it is used to determine the extent of the scatter so that steps may be taken to
control the existing variation. It is also used as measure of reliability of the average value. In
addition, it can be used to compare data sets and informs us which data sets is less or more
variable. For example, we can determine the whether the life span of male dog is more variable
than the females or can we say that harvest (kg/hectare) of a certain variety of rice is more
precise than the other varieties? All of these can be answered through the use of measures of
dispersion.

General Classifications of Measures of Dispersion

1. Measures of Absolute Dispersion

2. Measures of Relative Dispersion

4.1 Measures of Absolute Dispersion

The measures of absolute dispersion are expressed in the units of the original observations. They
cannot be used to compare variations of two data sets when the averages of these data sets differ a lot
in value or when the observations differ in units of measurement.

4.1.1 The Range

The range of a set of measurement s is the difference between the largest and smallest values.

R=maximum value−minimum value

Example:

The IQ scores of 5 members of the Morales’ family are 108, 112, 127, 116, and 113. Find the range.

Therefore, the range is R=127−108=19

4.1.2 The Standard Deviation and Variance

For a finite population of size N, the population variance is

 N

∑ (x i−μ)2
σ 2= i=1
N

And the population standard deviation is

√
N

∑ ( x i−μ)2
i=1
σ=
N

The population variance σ 2, can be estimated by the sample variance s2, where

∑ ( xi −x)2
s2= i=1
n−1

And the population standard σ deviation can be estimated by the sample standard deviation s,
where

√
N

∑ ( x i− x)2
i=1
s=
n−1

Example:

A sample of 5 households showed the following number of household members: 3, 8, 5, 5, and

4. Find the variance and the standard deviation.

Since the data came from samples, then sample variance is and sample standard deviation are
computed.

First compute the sample mean

3+8+5+5+ 4 25
x= = =5
5 5

Now the variance is

s2=
[ ( 3−5 )2+ ( 8−5 )2+ ( 5−5 )2 + ( 5−5 )2+ ( 4−5 )2 ]
5−1

¿
[ (−2 )2+ ( 3 )2+ ( 0 )2+ ( 0 )2 +−12 ] 14
= =3.5
4 4
And the Standard Deviation is

s= √ s2 =√ 3.5=1.8708 ≈ 1.87

4.2 Measures of Relative Dispersion

Measures of Relative Dispersion are unit less and are used when one wishes to compare
the scatter of one distribution with another distribution.

4.2.1 Coefficient of Variation

The coefficient of variation, CV, is the ratio of the standard deviation to the mean and is
usually expressed in percentage. It is computed as

σ s
CV = x 100 %∨CV = x 100 %
μ x

Lower or smaller value of coefficient of variation indicates a relatively less variable data
set or distribution. A more heterogeneous data set is indicted by higher coefficient of variation.

Example 1: Let the coefficient of variation for dataset A is 10.25% and the coefficient of
variation for dataset B is 15.73%. What does this information tell us?

This indicate that data set A is relatively more precise or less heterogeneous than data
set B since the coefficient of variation for dataset A is lower that the coefficient of variation of
dataset B.

Example 2: Below are the systolic blood pressure of selected men and women ages 60 -
65 years old;

Men : 145 130 125 128 130 120 132

Women : 118 120 135 125 122 137 140

Which has a relatively more disperse systolic BP, men or women?

Solution:

1. Compute the mean and standard deviation for both groups

Standard
  Mean Deviation
 Men 130.00 7.72
Wome
n 128.14 8.97
2. Compute the CV for both groups.

CV(Men) = 5.94% CV(Women) = 7.00%

3. Compare the computed CVs and make conclusion.

Since the CV of women (7.00%) is higher than the CV of men (5.94%), therefore the
systolic blood pressure of women is relatively more disperse than men.

Practice Exercise 4.1

Direction: Answer the following problems as indicated.

1. Find the range of the following data sets:

Data set a: 15, 16, 7, 5, 14, 10
Data set b: 110, 125, 98, 85, 62, 100
2. Find the standard deviation and variance of each set in #1.
3. On a final examination in Statistics, the average grade of 100 students of DS School was
80 and the standard deviation was 8. In another school, DF School, the average grade of
120 students was 75. And the standard deviation was 7.9. In which school was there a
greater Absolute deviation
4. Find the coefficient of variation of each set in #3. In which school was there a greater
relative deviation
5. On 16 days, a restaurant had the following numbers of orders for chicken and steak:
Chicken:
46 55 43 48 54 65 36 40 51 53 64 32
41 46 53 47
Steak:
39 41 25 30 46 36 37 23 30 33 50 44

41 28 35 37
Calculate the mean, median, mode, standard deviation, variance and CV and determine
which item the number of order is relatively more variable.

SUPPLEMENTAL VIDEOS FOR CHAPTER 4

 To have additional understanding of measures of variability how to compute standard
deviation, variance and coefficient of variation using EXCEL and using calculator, please visit the
following sites;

1. https://www.youtube.com/watch?v=s7WTQ0H0Acc
2. https://www.youtube.com/watch?v=wDAd_QHKoOg&t=21s
3. https://www.youtube.com/watch?v=McCoCvogTQ4
4. https://www.youtube.com/watch?v=zpLABdyepNk
5. https://www.youtube.com/watch?v=2s00gOvvdlY
6. https://www.youtube.com/watch?v=OI1wzkuKS6Y&t=57s
7. https://www.youtube.com/watch?v=j0RkssU0ZI0

ANSWER TO PRACTICE EXERCISE 4.1

 Practice Exercise 4.1

1. Range
Set a: 11
Set b: 63

2. Standard deviation
Set a: 4.535
Set b: 21.593

3. DS school has greater absolute deviation since the standard deviation is 8.

4. CV of DS School = 10%
CV of DF School = 10.53%
Therefore, DF School has greater relative deviation which is 10.53%

5.

  CHICKEN STEAK

Mean 48.38 35.94

Median 47.5 36.5
Mode 46 41
Standard Deviation 9.069 7.558
Sample Variance 82.25 57.13
Coefficient of Variation (%) 18.75 21.03

The number of orders for steak is relatively more variable that the number of orders for chicken,
since the CV for the number of orders for steak (21.03%) is higher than the CV for the number of orders
for chicken (18.75%).