knowledge skills technology innoventures

www.globsyn.com

Before We Start…

It is assumed that after going through the earlier session you are
now able to:

 Explain the significance and characteristics of Central

Tendency
 Define different measures of Central Tendency
 Understand the calculation of all the measures of Central
Tendency and explain the advantages and disadvantages
of the same

22
www.globsyn.edu.in
www.globsyn.com

Session 3

Quantitative Methods I

 Topics to be covered in this session:

 Dispersion

33
www.globsyn.edu.in
www.globsyn.com

Session Learning Objectives…

At the end of this session you should be able to:

 Understand what is dispersion

 Demonstrate different measures of dispersion
 Summarize the details of different measures of dispersion
and its importance in statistical field

44
www.globsyn.edu.in
www.globsyn.com

Measurement of Dispersion

The Inadequacy of Measures of Central Tendency

 Considers two groups below
Group I Group II
42 10
45 22
50 (the Mean) 50 (the Mean)
55 78
58 90
 The numbers in Group I are concentrated about their mean,
whereas those of Group II are widely scattered.

55
www.globsyn.edu.in
www.globsyn.com

Measures of Dispersion

 The measure of Central Tendency are therefore insufficient.

They must be supported by or supplemented with other
measures.
 A measure of Dispersion is designed to state the extent to
which the individual measures differ on the average from
the mean.
 In measuring dispersion we are interested in the amount of
the variation or its degree but not in the direction.
 A measure of 4 inches below the mean has just as much
dispersion as a measure of 4 inches above the mean.

66
www.globsyn.edu.in
www.globsyn.com

Contd…
 The amount of variability, or absolute variability, will be expressed in
concrete units, the same units that are used for the original variates,,
while the degree or relative variability, will be expressed ratios.
 In the figure given below Curve C is having greater variability than
Curve B or A although they are having same mean

77
www.globsyn.edu.in
www.globsyn.com

Measures of Absolute Variability

 The Range
 The Quartile Deviation
 The Mean Deviation
 The Standard Deviation

88
www.globsyn.edu.in
www.globsyn.com

Absolute Measure of Dispersion

 The simplest measure of the dispersion of a variable is its
range, which is defined as the difference between its highest
and lowest given value.
Marks obtained by A Marks obtained by B
63 61
47 54
56 56
44 57
66 60
65 59
80 55
43 62
Range: 80-43 = 37 Range: 62-54 = 8
99
www.globsyn.edu.in
www.globsyn.com

Quartile Deviation

 The median is a value of the variable such that half of the

given values are less than or equal to it and the remaining
half are greater or equal to it. The general measure of this
type is quartile.
 The quartile of order p is a value of the variable such that a
proportion of p of the total number of given values are less
than or equal to it and a proportion (1-p) are greater than or
equal to it.
 For a continuous variable this quartile (denoted by Zp) may
be approximately determined by the formula: Zp = xl +
{(np –nl) /fo } x c

10
10
www.globsyn.edu.in
www.globsyn.com

Contd…

 Xi = lower boundary of the class interval in which Zp lies

 C = width of this class interval
 nl = cumulative frequency (of the less than type)
corresponding to xl
 f0 = frequency in this class
 Z1/4 is the first or lower quartile ( denoted by Q1), the
median is the second quartile (Mi = Q2) and Z3/4 the third or
upper quartile (Q3)

11
11
www.globsyn.edu.in
www.globsyn.com

Contd…

 The quartiles are the points on the X-scale that divide the
distribution into four equal parts.
 There are three quartiles, the second coinciding with the
median.
 The quartile, Q1 is that point on the X-scale such that one-
fourth of the total frequency is less than Q1 and three-
fourths are greater than Q1.
 The upper quartile, Q3, is that point on the X- scale such
that three fourths of the total frequency are below Q3 and
one-fourth is above it.

12
12
www.globsyn.edu.in
www.globsyn.com

Contd…

 Between Q1 and Q3, are included one half the total

frequency.
 The quartile range Q3-Q1 is a convenient measure of
absolute variation.
 The greater the quartile range, the greater the dispersion.
 The lower and upper quartiles provide us with another
measure of dispersion. This measure is: Q = (Q3-Q1)/2
 Called the semi-inter quartile range or quartile deviation

13
13
www.globsyn.edu.in
www.globsyn.com

QUARTILE (Cont’d)

14
www.globsyn.edu.in
www.globsyn.com

Mean Deviation

 The range provides important information about the data set,

but it really only takes into account two data points. It's kind
of like taking a vacation where only the departure and the
destination are important and the trip itself is ignored... but
sometimes (usually) we want to include something about the
points in between.
 In order to do this, we need to relate the points to some fixed
point. We have two good choices, the median and the mean.

15
15
www.globsyn.edu.in
www.globsyn.com

Mean Deviation

 The easiest way to compare each point to the mean is to

subtract the mean data point from the observed data point.
Because some points are above the mean and some below
the mean, you will get both positive and negative numbers.

16
16
www.globsyn.edu.in
www.globsyn.com

Take a look at these sample scores

17
17
www.globsyn.edu.in
www.globsyn.com

Contd…

 What did you get when you added up all your deviation
scores? Is this method going to be useful to us? It seems that
the negative and positive deviation scores always cancel
each other out. What can we do about this?
 There are two ways to handle this dilemma. You could
simply take the absolute value of all the scores or you could
square all the scores. Either way will get rid of the negative
scores and give us something with which to work.

18
18
www.globsyn.edu.in
www.globsyn.com

Contd…

 The mean deviation is the first measure of dispersion that

we will use that actually uses each data value in its
computation. It is the mean of the distances between each
value and the mean. It gives us an idea of how spread out
from the center the set of values is.
Here's the formula:

19
19
www.globsyn.edu.in
www.globsyn.com

Standard Deviation

 In considering the deviations Xi-A for obtaining a measure

of dispersion, we may get rid of their signs (taking their
magnitude only into account) by taking, instead of their
absolute values |Xi-A|, their squares (Xi-A)2.
 Like the absolute values, these squares will also reflect the
dispersion of the variable about A.
 The positive square-root of the arithmetic mean of these
quantities, i.e. √1/n ∑ (Xi-A)2 Which is called the root-
mean-square deviation about A. It is usually denoted бx.

20
20
www.globsyn.edu.in
www.globsyn.com

Contd…

 For simple series,

б2 = 1/n ∑(xi-x¯)2
 For frequency distribution
б2 = 1/N ∑fi(xi-x¯)2

 S.D. is always considered as positive. Thus, S.D. is the

positive square-root of variance.

21
21
www.globsyn.edu.in
www.globsyn.com

Measures of Relative Dispersion

 The measures of dispersion we have discussed above are all

expressed in the same units as those of the variable.
 They cannot be used in comparing two distributions of
different types with respect to their variability.
 A difficulty is encountered, for example, when we want to
compare the dispersion of a set of height (cm.) with the
dispersion of a set of weights (kg.).
 For purpose of such comparison, therefore, a measure of
dispersion has to be made free from the units of the variable.

22
22
www.globsyn.edu.in
www.globsyn.com

Contd…

 The simplest procedure is to express a measure of dispersion

as a percentage of a measure of central tendency. The most
commonly used measure of this type is the coefficient of
variation.
 coefficient of variation
= 100 x S.D./Mean
 Coefficient of Quartile Deviation
= 100 x Q.D./Median
 Coefficient of Mean Deviation
= 100 x M.D./Mean

23
23
www.globsyn.edu.in
www.globsyn.com

Contd…

 Suppose mean of the one measurement is 10 cm. and mean

of the another measurement is 100 cm., provided the
measurements are free from bias. Let the S.D. of each
measurements be 2 cm.
 But the S.D. of 2 cm. in the first case does not mean the
same thing as a S.D. of 2 cm. in the second.
 The first set of measurement is less accurate than the second
set of measurements.
 The coefficient of variation, will give the true picture of
their relative accuracy.
 Thus it may be useful even when we want to compare sets
of data expressed in the same units.

24
24
www.globsyn.edu.in
www.globsyn.com

EXAMPLE-1
• Find the quartile deviation and its coefficient from the following data
X f cf
110 6 6
130 12 18
150 18 36
170 14 50
190 9 59
59
Q1= (N+1/4)th item = 60/4= 15th item i.e 130

Q3 = 3(N+1)/4th item = 180/4 = 45th item i.e 170

Quartile Deviation = (Q3-Q1)/2 = 170- 130/2 = 20

Coefficient of Quartile Deviation = Quartile Deviation/Median

= 20/150 = 0.133
25
25
www.globsyn.edu.in
www.globsyn.com

EXAMPLE-2
• Find the quartile deviation from the following continuous series
Class Interval f cf
0-20 8 8
20-40 16 24
40-60 24 48
60-80 12 60
80-100 40 100

Q1 = L1 + (N/4 – cf)/f x c N = 100

= 40+ (100/4-24)/24 x 20 Q1 = 100/4 = 25th item
= 40 +( 25-24)/24 x20 Thus 40-60 is the class
= 40.83

26
26
www.globsyn.edu.in
www.globsyn.com

EXAMPLE-2 (Con’td)

Q3 = L1 + (3N/4 – cf)/f x c N = 100

= 80+ (300/4-60)/40 x 20 Q3 = 3x100/4 = 75th item
= 80 +( 75-60)/40 x20 Thus 80-100 is the class
= 87.50

Quartile Deviation = (Q3-Q1)/2 = (87.5-40.83)/2= 23.34

27
27
www.globsyn.edu.in
www.globsyn.com

EXAMPLE -3
• Calculate the Mean deviation from the mean and its coefficient from
the following data
Class f m fm D=(m-X) fD
Interval
0-20 15 10 150 -44 -660
20-40 20 30 600 -24 -480
40-60 25 50 1250 -4 -100
60-80 10 70 700 +16 +160
80-100 30 90 2700 +36 +1080
∑fm=5400 ∑ f |D|=2480

X = 5400/100 = 54
MD from Mean = ∑ f |D|/N= 2480/100= 24.80
Coefficient of MD = MD from Mean/Mean= 24.86/54 = 0.46

28
28
www.globsyn.edu.in
www.globsyn.com

STANDARD DEVIATION

29
29
www.globsyn.edu.in
www.globsyn.com

STANDARD DEVIATION(GROUPED DATA)

30
30
www.globsyn.edu.in
www.globsyn.com

EXAMPLE-4
• Calculate the Standard Deviation from following data
Class f m fm M- X‾ (M-‾X)2 f(M-‾X)2
Interval

0-20 8 10 80 -43 1849 14792

20-40 16 30 480 -23 529 8464

40-60 24 50 1200 -03 9 216

60-80 20 70 1400 17 289 5780

80-100 12 90 1080 37 1369 16428

N=80 ∑ fm= ∑ f(M-‾X)2

4240 = 45680

Average = 4240/80 = 53 S.D(ϭ )= √ 45680/80 =23.89

Variance = ϭ2 = (23.89)2 =570.73

31
31
www.globsyn.edu.in
www.globsyn.com

Coefficient of Variation

Example: Lab technician A completes 40 analysis with a standard deviation of

5 . Technician B completes 160 analysis with a standard deviation of 15
Which employee shows lesser variability

CV of A = 5/40 x 100 = 12.5%

CV of B = 15/160 x 100 = 9.4 %

32
32
www.globsyn.edu.in
www.globsyn.com

Coefficient of Variation - Properties

• CV shows reliability of field experiments. If CV is low it

shows more reliability of the experimental findings
• If CV is small it shows data is more consistent

33
33
www.globsyn.edu.in
www.globsyn.com

ASSUMED MEAN METHOD

34
34
www.globsyn.edu.in
www.globsyn.com

Before We End…

It is assumed that after going through the earlier session you are
now able to:

 Understand what is dispersion

 Demonstrate different measures of dispersion
 Summarize the details of different measures of dispersion
and its importance in statistical field

35
35
www.globsyn.edu.in
www.globsyn.com

Crib Sheet
Dispersion
The amount of the variation or its
degree but not in the direction.
The Quartile Deviation
The Quartile Deviation(QD) is the
product of half of the difference
between the upper and lower quartiles.
Mathematically we can define as Q =
(Q3-Q1)/2
The Range
The difference between its highest and
lowest given value
Mean Deviation
It is the mean of the distances between
each value and the mean. It gives us an
idea of how spread out from the center
the set of values is.
MD=1/N∑|X−A|=∑|D|/N
Standard Deviation
The standard deviation is a measure of
the amount of variation or dispersion of
a set of values.
• For simple series, б2 = 1/n ∑(xi-
x¯)2
• For frequency distribution
б2 = 1/N ∑fi(xi-x¯)2

36
36
www.globsyn.edu.in
www.globsyn.com

THANK YOU…

All information, including graphical representations, etc provided in this presentation is for exclusive use of current GBS
students and faculty. No part of the document may be reproduced in any form or by any means, electronic or otherwise, without
written permission of the owner.

37
37
www.globsyn.edu.in