• Variation always exists in a data set, regardless of which

characteristic you are measuring, because not every

individual is going to have the same exact value for every
variable.
• e.g. The amount of time that it takes to start
doing homework each day varies from day to day.

Statistics for Dummies

 The Range
• Measure of Variation
• Difference Between Largest & Smallest
Observations:
Range = x Largest  x Smallest
• Ignores How Data Are Distributed:
Range = 12 - 7 = 5 Range = 12 - 7 = 5

7 8 9 10 11 12 7 8 9 10 11 12
 Standard Deviation
•represents the typical distance from any point
in the data set to the center
•For the Population: Xi  
2
2
 
N
•For the Sample:  X i  X 
2
2
s 
n 1
For the Population: use N in the For the Sample : use n - 1
denominator. in the denominator.
Comparing Standard Deviations
Data : X i : 10 12 14 15 17 18 18 24

N= 8 Mean =16

 X i  X 
2
s = = 4.2426
n 1
 X i   
2
  = 3.9686
N
Value for the Standard Deviation is larger for data considered as a Sample.
Comparing Standard Deviations
Data A
Mean = 15.5
11 12 13 14 15 16 17 18 19 20 21 s = 3.338

Data B
Mean = 15.5
11 12 13 14 15 16 17 18 19 20 21 s = .9258
Data C
Mean = 15.5
11 12 13 14 15 16 17 18 19 20 21 s = 4.57
•Measure of Relative Variation
•Always a %
•Shows Variation Relative to Mean
•Used to Compare 2 or More Groups
•Formula ( for Sample):

S
CV     100%
X 
• Stock A: Average Price last year = $50
• Standard Deviation = $5
• Stock B: Average Price last year = $100
• Standard Deviation = $5

Coefficient of Variation:
S 
CV     100% Stock A: CV = 10%
X  Stock B: CV = 5%
Thank you

“How easy it is for so many of us today to

be undoubtedly full of information yet fully
deprived of accurate information.”
― Criss Jami
www.goodreads.com
• Describes How Data Are Distributed
• Measures of Shape:
• Symmetric or skewed

Left-Skewed Symmetric Right-Skewed

Mean Median Mode Mean = Median = Mode Mode Median Mean
• Graphical Display of Data Using
5-Number Summary

X smallest Q1 Median Q3 Xlargest

4 6 8 10 12
Left-Skewed Symmetric Right-Skewed
Q1 Median Q3 Q1 Median Q3 Q1 Median Q3
• Symmetrical (mean is about equal to
median)
• Skewed
• Negatively (example: years of education)
mean < median
• Positively (example: income)
mean > median
• Bimodal (two distinct modes)
• Multi-modal (more than 2 distinct modes)