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LESSON OUTCOMES
 By the end of this chapter, you will be able to :

 Explain the concept of variability

 Calculate the range, interquartile range and quartile
TOPIC 5; deviation

MEASURES OF DISPERSION  Calculate the mean deviation, variance and standard

deviation
 Find the coefficient of variation and interpret the results
 Find the coefficient of determination and interpret its value
DR. JUNAINAH BINTI MOHAMAD  Solve problems involving mean, standard deviation,
variance and coefficient of variation.
NAJMA BINTI AZMAN

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INTRODUCTION UNDERSTANDING DISPERSION IN DATA

 A distribution can be effectively describes by central location  Help us to understand the spread or variability of a set of
(using mean, median or mode) and the dispersion. Dispersion of data
a distribution provide us additional information on the
reliability of the measure of central location. If the data are
 Gives additional information to judge reliability of the
widely dispersed, the central location is said to be less measure of central tendency
representatives of the data as a whole.  Helps in comparing dispersion that is present in various
 The central location for the for data with little dispersion is sample
more reliable.  Measure of dispersion :
 A widely spread dispersion should not being used for decision  Range
making.  interquartile range
 For eg : a financial analyst knows that widely dispersed earning  Average
indicate a high risk to stockholders and creditors whereas small  Absolute deviation
dispersion of earnings indicates stable earnings and therefore  Variance
lower risk level.  Standard deviation
 Coefficient of variance

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DISTANCE MEASURES OF DISPERSION DISTANCE MEASURES OF DISPERSION

 Range is the difference between the largest and the smallest

observations in a set of data. Find the range for the following data :
9.77 10.51 14.11 12.33 16.55 28.44
20.12 20.33 38.16 33.11
Range = Largest Value - Smallest Value
Range = 38.16 - 9.77
= 28.39
Find the range for the following data :
9.77 11.35 12.46 13.80 15.47 17.48 18.37
18.47 18.61 20.72 21.49 22.47 31.50 38.16 The TWO (2) examples above show that the two different set of data
may give the same range. However, the values between the two extreme
Range = 38.16 - 9.77 are different. Thus, the range is heavily influenced by the extreme values
= 28.39 in the data. Range is often used in quality control for production processes
due to its simplicity.
 The range measures the total spread of the data. The range is a simple
measure of total variation or dispersion in the data. However, the Number of air conditioner units , x 0 1 2 3 4 Total

weakness is, it does not take into account how the data are distributed Number of houses, f 25 30 16 14 5 90
from the smallest to the largest.
Range = 4-0
=4

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RANGE FOR GROUPED DATA INTERQUARTILE RANGE & QUARTILE

DEVIATION
 For grouped data in the frequency distribution, the range is the  The difference between the third quartile and the first quartile in the
difference between th upper boundary of the highest class (Uβ ) and the set of dara.
lower boundary of the lowest class (Lβ ).  Also represent 50% of data, and not influenced by the extreme value of
data set.
Range = (Upper boundary of highest class) - (lower boundary of lowest class)
Interquartile Range = Q3 - Q1

Daily wages (RM) Class Boundary Number of workers  Another measurement of distance dispersion is quartile deviation. it is
10-19 9.5-19.5 6 defined as :
20-29 19.50-29.5 10 Quartile deviation = ½ (Q3 - Q1)
30-39 29.5-39.5 30
40-49 39.5-49.5 20  It is also frequent called as semi-interquartile range.
50-59 49.5-59.5 10  Find the interquartile and range qartile deviation of the following data :
60-69 59.5-69.5 4 9 11 14 13 15 17 18

37 18 47 18 61 20 50
Range = RM69.50 - RM9.50 = RM60

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INTERQUARTILE RANGE & QUARTILE INTERQUARTILE RANGE & QUARTILE

DEVIATION DEVIATION
Class interval Frequency, f
9 11 13 14 15 17 18 18 18 20 37 47 50 61
0≦ x < 5 2

5 ≦ x < 10 6
10 ≦ x < 15 8
Location of Q1 = 14+ 1= 3.75 = 4th observation and Q1 = 14
4 15 ≦ x < 20 5
Location of Q3 = 3 (14 + 1) = 11.25 = 11th observation and Q3 = 37 20 ≦ x < 25 2
4
Interquartile range = Q3 - Q1 = 37 - 14 = 23
Location of Q1 = ∑f = 23 = 5.75
Quartile deviation = 1 (Q3 - Q1) = 1 (37 - 14) = 11.5, 4 4
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Thus, the interquartile range is 23 and the quartile deviation is 11.5 Q1 = 5 + 5.75 - 2 x 5 = 8.125
4

Location of Q1 = 3 (∑f) = 3 (23) = 17.25

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Find the interquartile range and the quartile deviation for the following Q1 = 15 + 17.25 - 16 x 5 = 16.25
data : 4

Interquartile range = Q3 - Q1 = 16.25 - 8.125 = 8.125

Quartile deviation = 1 (Q3 - Q1) = 1 (16.25 - 8.125) = 4.063,

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MEAN DEVIATION (AVERAGE ABSOLUTE

POPULATION VARIANCE- UNGROUP DATA
DEVIATION
 Mean deviation (or averange absolute deviation) is  Varience determines how values fluctuate around the mean.
calculated by summing up the difference between each The population varience is the mean value as s2 and read as
observation and the mean. This value is then divided by the sigma squared.
number of observations. σ2 = 1∑(X - μ)2
N
Mean deviation = ∑|X - mean|
n OR
 Where x is the observation, while n is the number of observation. σ2 = 1∑X2 - μ2
 Find the mean deviation of the following data : 12 6 3 7 8 10 11 N

Mean = 12 + 6 + 3 + 7 + 8 + 10 + 11 = 8.14 Where σ2 = population variance

7 X = observation
Mean deviation = |12 - 8.14|+|6 - 8.14|+|3 - 8.14|+|7 - 8.14|+|8 - 8.14| N = total number of observation in the population
+|10 - 8.14|+|11 - 8.14| ∑ = sum of all values
7 and
= 17.14 = 2.45 μ = mean
7
Thus, the mean deviation is 2.45

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POPULATION STANDARD DEVIATION -

UNGROUP DATA POPULATION VARIANCE- GROUP DATA

 The most practical and commonly used measures of  For group data that is in the form of distribution of class
variation in population standard deviation which is intervals and each class interval is represented by the mid-
reprensented by the symbol σ. This measure is the square point, the following formulae for population is used.
root of the population variance and always defined as : σ2 = 1∑f(X - μ)2
N
σ = √σ2
OR
OR σ2 = 1∑fX2 - ∑fμ2
N N
σ = 1∑(X - μ)2
N  Find the population variance and standard deviation of the following
frequency distribution. Class interval Frequency, f

 Please refer to the text book page 125 0≦ x < 6 2

 Find the standard deviation of the following data : 2 12 7 2 5 9 6≦ x < 12 4

12 ≦ x < 18 10

18 ≦ x < 24 12
24 ≦ x <30 8
30 ≦ x <24 4

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SAMPLE STANDARD DEVIATION - UNGROUP

SAMPLE VARIANCE- UNGROUP DATA DATA

 Varience for a sample of n measurement is the sum of the  Sample standard deviation is the square root of the sample
squared distances of measurements from the mean divided variance and always defined as :
by (n-1). Normally denoted as s2.
s = √s2
s2 = 1 ∑(x - x)2
n-1 OR
OR
s= 1 ∑(x - x)2
 Refer to your textbook page 128. n-1

 Please refer to the text book page 128

Where n = number of observations or values in the sample
X = observation or value
 Find the variance and standard deviation of the following data :
x = sample mean 1 7 2 5
∑ x2 = sum of all the squares observation
 The variance and standard debiation (square root variance) are the
measures of average scatter around the mean.

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SAMPLE VARIANCE & STANDARD COEFFICIENT OF VARIATION (RELATIVE

DEVIATION- GROUP DATA DISPERSION)
 For grouped data that is in the form of disribution of class  Large standard deviation mean large variability within the
intervals, the following formulae is used : data set. In some cases, large variability is desired, but in
s2 = 1 ∑f(x - x)2 other cases small variability is desired.
n-1
 Distribution of difference means and variance, Coefficient
OR
Variance is a useful measure.
 Refer to your textbook page 130.
 Standard deviation is the square root of the sample variance  Gives us ratio of standard deviation of the arithmetic mean
expressed as a percent.
s= 1 ∑f(x - x)2
n-1 CV= Sample standard deviation x 100
Sample mean
 Please refer to the Example 5.13 page 130.

Example : Typist Ani can type 40 words per minute with a standard deviation of 5,
while typist Jura can type 160 words per minute with standard deviation of 10.
Which ttypist is more consistent in her work?

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COEFFICIENT OF VARIATION (RELATIVE

SKEWNESS
DISPERSION)
 Other than means of central location and dispersion, another important
CV for Ani = s x 100% = 5 x 100% =12.5% measure of distribution is the skewness of the distribution. A distribution can
x 40 be symmetric, skewed to the right OR left. In the set data, if the mode is greater
CV for Jura = s x 100% = 10 x 100% = 6.5% than the mean, this means that there are more values bigger than the mean,
x 160 where the smaller values are more widely spread. This distribution is negatively-
The result show that the typing ability of typist Jura is more consistent than typist Ani. skewed or skewed to the left.
 However, if the mean is greater than the mode, the distribution is skewed to
 The table below shows the investment of Karu and Kamal investments'. Whose right or positively-skewed.
investment is more cosistent?  If the mean, median and mode are equal and the distribution is equally spread
Investment Karu Kamal on both side of the mean, then it is said to be symmetrical. The distribution is
Profit 250.00 250.00
usually bell-shaped.
Standard Deviation 8.16 238.05

CV for Karu = s x 100% = 8.16 x 100% =3.26%

x 250
CV for Kamal = s x 100% = 238.05 x 100% = 95.22%
x 250
Karu investment is more consistent. Explain why?

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MEASURE OF SKEWNESS

 Measure of skewness is used to determine the difference between the

mean and mode of the distribution.
 If (mean - mode) = +ve (positive), skewed to the right
 If (mean - mode) = -ve (negative), skewed to left
 If (mean - mode) = 0, the distribution is symmetrical.
 Pearson coefficient of skewness is usually used to measure the skewness of the
distribution. it is calculated as follows :

Skewness = Mean - Mode Skewness = 3 (Mean - Median)

OR
Std. Deviation Std. Deviation

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