RECORDING

PRN : 20200212060117

REFLECTION
NAME: RAHUL SINGH

SUBJECT: QUANTITATIVE TECHINQUE

REPORT
TOPIC: MEASURES OF DISPERSION

DATE : 04/12/2020 REFLECTION

NO: 03

Faculty Name: Prashant ubarhande

Designation: FACULTY

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DISPERSION:

Dispersion is a statistical term that describes the size of the distribution of values expected for
a particular variable. Dispersion can be measured by several different statistics, such as range,
variance, and standard deviation. In finance and investing, dispersion usually refers to the
range of possible returns on an investment, but it can also be used to measure the risk
inherent in a particular security or investment portfolio. It is often interpreted as a measure of
the degree of uncertainty, and thus, risk, associated with a particular security or investment
portfolio.

Objective of dispersion:

1.To know the range of the values

2.To know whether the central tendency truly represents the series or not
3.To know the variation of different values of the items from the average value of a series
4.To compare the disparity between two or more series in order to find out the degree of
variation

MERITS OF RANGE 
 
 Simplest measure of dispersion 
 Can be easily calculated 
 It is less time consuming 
 
 
DEMERITS OF RANGE 
 
 Not based on all items of series 
 Highly affected by sampling fluctuations 
 Cannot be computed in the case of open-end distribution 

 
 
Measures of Dispersion 
 Range 
This is the common term which is used in the shopping ;  it’s the highest and lowest limit of
spending so we can say that it is the lowest observation of the data and the highest
observation of the data. 

Example: - we have data set and we going to see how it is arranged the range will be there
between two variables by any mean is what we call range. 
So, Range= Largest observation  – smallest Observation 

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Coefficient of range = Largest Observation - Smallest Observation  / Largest Observation  + 
Smallest Observation. 

Discreet data:- In this it’s all depend on the values of x not on y in the x we can find the
highest and the lowest value by Applying formula we can find the range of the data. 

Grouped data: - In this also we are not bothering about frequency at all, only the difference
of highest and the lowest will have to be there. 

 Quartile Deviations 
This is considered to be the one half differences that have been got by subtracting the whole
quartile from the third one.  

Quartile 2:- Individual Data = N+1 by 2 and the observation is median that can be q2. 

Discreet Data:- N = 1 by 2 then we determine the value corresponding to this equation or

just above above to this equation. 

Grouped Data:- N = 1 by 2 in this case and we will get correspond to the class and by the
formula of = L= h b y f ( n b y 2 - c  ) . 

Mean Deviation 
Some of the ways to find out the mean deviation in different category. 

Individual Data:- The submission of deviation of the mean and divides by number of mean

of the deviations. 

Discreet Data:- For these kind of submission it is simply f d or f x by n. 

Standard Deviation 

This is adjoined by Greek letter that belong to sigma this is commonly used to measure the
dispersion in data and this is denoted by sigma. This is the positive square root of Mean of
square of deviation of observations from its mean so this is what standard deviation. 

STANDARD DEVIATION 
 

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It is denoted in a Greek letter as “sigma” it is used to calculate the disperse in the data in four
equal part of observation.it show us the disperse of the data it show the data is scatter or it
is disperse that scantiness of data is called as the standard deviation.  
 

Merits of Standard Deviation: - 

1. It is rigidly defined. 
2. It is based on all calculation of the observation. 
3. It follows algebraic principles. 

Demerits of Standard Deviation: -  

1. Not easy to understand.  

2. Not easy to calculate.  
3. Affected by the extreme value.  
4. Not used for comparing in different units.  

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