MEASURES OF DISPERSION

PRACTICE PROBLEMS
1. Evaluate an appropriate measure of dispersion for the following data :
Income (Rs) Less than 50 50-70 70-90 90-110 110-130 130-150 Above 150
No. of Persons 54 100 140 300 230 125 51

2. Find out mean deviation (from median) and its coefficient from the following series :
Weight of package (kg) : 4 6 8 10 12 14 16
Frequency : 2 1 3 6 4 3 1

3. Calculate the mean and standard deviation from the following data :.
Value 90-99 80-89 70-79 60-69 50-59 40-49 30-39
Frequency 2 12 22 20 14 4 1

4. The mean and standard deviation of 20 items are found to be 10 and 2 respectively. At the time
of checking it was found that one of the item 8 was incorrect. Calculate the mean and standard
deviation if :
i. the wrong item is omitted and
ii. it is replaced by 12.(3.25/18)(i.10.105,1.998 ii.10.2,1.99)

5. The Shareholders Research Centre of India has conducted recently a research study on the price
behaviour of three leading industrial shares A, B and C for period 1995 to 2000, the results of
which are published as follows in its Quarterly Journal :
Share Avg. Price Std. Deviation Current Selling Price
A 18.0 5.4 36.00
B 22.5 4.5 34.75
C 24.0 6.0 39.00
(figures are in Rs.)
a. Which share, in your opinion, appears to be more stable in value?
b. If you are the holder of all three shares, which one would you like to dispose off at present
and why?
6. The analysis of monthly wages of workers of two organizations A and B yielded the following
results :

Organization
A B
No. of Workers 50 60
Average daily wages Rs. 60 Rs. 48
Variance 100 144
Obtain the average daily wages and standard deviation of wages of all workers in the two
organizations taken together. Which organization has a larger wage bill? Which organization is
more equitable in regard to wages ?
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