CHARLES JOHN B.

DOL EXERCISE 3

1. A measure of variability is a summary statistic that represents the amount of dispersion

in a dataset. While a measure of central tendency describes the typical value, measures
of variability define how far away the data points tend to fall from the center. We talk
about variability in the context of a distribution of values. A low dispersion indicates that
the data points tend to be clustered tightly around the center. High dispersion signifies
that they tend to fall further away.

2. Analyze Distributions
The Distribution platform illustrates the distribution of a single variable (univariate
analysis) using histograms, additional graphs, and reports. The word univariate simply
means involving one variable instead of two (bivariate) or many (multivariate). However,
you can examine the distribution of several individual variables within a single report.
The report content for each variable changes depending on whether the variable is
categorical (nominal or ordinal) or continuous.

•For categorical variables, the initial graph is a histogram. The histogram shows a bar for
each level of the ordinal or nominal variable. The reports show counts and proportions.

•For continuous variables, the initial graphs show a histogram and an outlier box plot.
The histogram shows a bar for grouped values of the continuous variable. The reports
show selected quantiles and summary statistics.

3. The measures of association refer to a wide variety of coefficients (including bivariate

correlation and regression coefficients) that measure the strength and direction of the
relationship between variables; these measures of strength, or association, can be
described in several ways, depending on the analysis.

There are certain points that a researcher should know in order to better understand the
measures of statistical association.

First, the researcher should know that measures of association are not the same as
measures of statistical significance. It is possible for a weak association to be
statistically significant; it is also possible for a strong association to not be statistically
significant.
For measures of association, a value of zero signifies that no relationship exists. In a
correlation analysis, if the coefficient (r) has a value of one, it signifies a perfect
relationship on the variables of interest. In regression analyses, if the standardized beta
weight (β) has a value of one, it also signifies a perfect relationship on the variables of
interest. The researcher should note that bivariate measures of association (e.g.,
Pearson correlations) are inappropriate for curvilinear relationships or discontinuous
relationships.
 Once you know how your data are distributed, you can plan the appropriate type of
analysis going forward.

4. It helps you to understand how the degree to which data values are spread out in a
distribution can be assessed using simple measures to best represent the variability in
the data. Why? Because, measures of variability also occur very frequently in the
medical research literature and in business.

A, b, and c are statistical tools and statistical research in business enables managers to
analyze past performance, predict future business practices and lead organizations
effectively. Statistics can describe markets, inform advertising, set prices and respond to
changes in consumer demand.

Sources

Jim, (2020). Measures of Variability: Range, Interquartile Range, Variance and Standard
Deviation. Retrieved from
https://statisticsbyjim.com/basics/variability-range-interquartile-variance-standard-deviation/#:~:t
ext=A%20measure%20of%20variability%20is,of%20dispersion%20in%20a%20dataset.&text=
While%20a%20measure%20of%20central,to%20fall%20from%20the%20center​.

Jump (2020). Statistical Discovery. Retrieved from

https://www.jmp.com/support/help/en/15.2/index.shtml#page/jmp/analyze-distributions-2.shtml

Berry, K. J., & Mielke, P. W. (1992). A family of multivariate measures of association for nominal
independent variables. Educational and Psychological Measurement, 52(1), 41-55.

Cohen, J., & Nee, J. C. (1984). Estimators for two measures of association for set correlation.
Educational and Psychological Measurement, 44(4), 907-917.

Gibbons, J. A. (1985). Shrinkage formulas for two nominal level measures of association.
Educational and Psychological Measurement, 45(3), 551-566.

Gibbons, J. D. (1993). Nonparametric measures of association. Thousand Oaks, CA: Sage

Publications.

Keown, L. L., & Hakstian, A. R. (1973). Measures of association for the component analysis of
Likert scale data. Journal of Experimental Education, 41(3), 22-27.

Kim, S., & Olejnik, S. (2005). Bias and precision of measures of association for a fixed-effect
multivariate analysis of variance model. Multivariate Behavioral Research, 40(4), 401-421.
Kraemer, H. C. (2000). Measures of association. In Encyclopedia of psychology (Vol. 5, pp.
135-139). Washington, DC: American Psychological Association.

Krieger, A. M., & Green, P. E. (1993). Generalized measures of association for ranked data with
an application to prediction accuracy. Journal of Classification, 10(1), 93-114.

Liebetrau, A. M. (1983). Measures of association. Newbury Park, CA: Sage Publications.

Siegel, S. (1956). Nonparametric Statistics For The Behavioral Sciences. New York:
McGraw-Hill.

Stevens, J. P. (1972). Global measures of association in multivariate analysis of variance.

Multivariate Behavioral Research, 7(3), 373-378.

Wilcox, R. R. (2007). Local measures of association: Estimating the derivative of the regression
line. British Journal of Mathematical and Statistical Psychology, 60, 107-117.

https://www.intemarketing.org/marketing-information/marketing-analysis/distribution-analysis#:~:
text=Distribution%20Analysis%20is%20used%20in,CICD%20Analysis%20and%20External%20
Analysis​.
Lamar University (2016) How Are Statistics Used to Make Business Decisions.
https://degree.lamar.edu/articles/undergraduate/how-are-statistics-used-to-make-business-decis
ions/#:~:text=Statistical%20research%20in%20business%20enables,to%20changes%20in%20
consumer%20demand​.