Chapter Four

Measures of Dispersion
Structure
4.1 Measures of dispersion
4.2 Definition of Dispersion
4.3 Objectives of Measuring Dispersion
4.4 Characteristics of a good measure of dispersion
4.5 Types of measures of dispersion
4.6 Range and coefficient of range
4.7 Quartile deviation and coefficient of quartile deviation
4.8 Average deviation and coefficient of average deviation
4.9 Standard deviation and coefficient of variation
4.10 Mathematical properties of standard deviation
4.11 Correcting incorrect value of Standard Deviation
4.12 Differences between Mean Deviation and Standard Deviation
4.13 Relation between Measures of Dispersion
4.14 Solved problems

4.1 Measures of dispersion

The measures of central tendency serve to locate the center of the distribution, but
they do not reveal how the items are spread out on either side of the center. This
characteristic of a frequency distribution is commonly referred to as dispersion. In a
series all the items are not equal. There is difference or variation among the values.
The degree of variation is evaluated by various measures of dispersion. Small
dispersion indicates high uniformity of the items, while large dispersion indicates less
uniformity. For example, consider the following marks of two students.

Student I Student II
68 85
75 90
65 80
67 25
70 65
Both have got a total of 345 and an average of 69 each. The fact is that the second
student has failed in one paper. When the averages alone are considered, the two
students are equal. But first student has less variation than second student. Less
variation is a desirable characteristic.

4.2 Definition of Dispersion

Some important definitions of dispersion are given below:
1. “Dispersion is the measure of the variation of the items.” -A.L. Bowley
2. “The degree to which numerical data tend to spread about an average value is
called the variation of dispersion of the data.” –Spiegel
3. “Dispersion or spread is the degree of the scatter or variation of the variable
about a central value.” -Brooks & Dick
4. “The measurement of the scatterness of the mass of figures in a series about an
average is called measure of variation or dispersion.”
-Simpson & Kajka

It is clear from above that dispersion (also known as scatter, spread or variation)
measures the extent to which the items vary from some central value. Since measures
of dispersion give an average of the differences of various items from an average, they
are also called averages of the second order. An average is more meaningful when it is
examined in the light of dispersion.

4.3 Objectives of Measuring Dispersion

Measures of variation are needed for four basic purposes:
1. To judge the reliability of measures of central tendency: Measures of
dispersion point out as to how far an average is representative of the mass.
When dispersion is small, the average is a typical value in the sense that it
closely represents the individual value and it is reliable in the sense that it is a
good estimate of the average in the corresponding universe. On the other hand,
when dispersion is large, the average is not so typical, and unless the sample is
very large, the average may be quite unreliable.

2. To control the variability itself: Another purpose of measuring dispersion is to

determine nature and cause of variation in order to control the variation itself. In
matters of health variations in body temperature, pulse beat and blood pressure
are the basic guides to diagnosis. Prescribed treatment is designed to control
their variation. In industrial production efficient operation requires control of
quality variation the causes of which are sought through inspection is basic to the
control of causes of variation. In social sciences a special problem requiring the
measurement of variability is the measurement of "inequality" of the distribution
of income or wealth etc.

3. To compare two or more series with regard to their variability: Measures of

dispersion enable a comparison to be made of two or more series with regard to
their variability. The study of variation may also be looked upon as a means of
determining uniformity of consistency. A high degree of variation would mean
 little uniformity or consistency whereas a low degree of variation would mean
great uniformity or consistency.

4. To facilitate the use of other statistical measure: Many powerful analytical

tools in statistics such as correlation analysis. The testing of hypothesis, analysis
of variance, the statistical quality control and regression analysis is based on
measures of variation of one kind or another.

4.4 Characteristics of a good measure of dispersion

Characteristics of a good measure of dispersion are given below:
1. It should be simple to understand.
2. It should be easy to calculate.
3. It should be rigidly defined.
4. It should be based on all the items.
5. It should lend itself for algebraic manipulation.
6. It should have sampling stability.
7. It should not be unduly affected by extreme items.

4.5 Types of measures of dispersion

There are two kinds of measures of dispersion, namely

1. Absolute measure of dispersion and

2. Relative measure of dispersion.
Absolute measure of dispersion indicates the amount of variation in a set of values in
terms of units of observations. For example, when rainfalls on different days are
available in mm, any absolute measure of dispersion gives the variation in rainfall in
mm.

On the other hand relative measures of dispersion are free from the units of
measurements of the observations. A measure of relative dispersion/variation is the
ratio of a measure of absolute variation to an average. It is sometimes called a
coefficient of variation because “coefficient” means a pure number.

The various absolute and relative measures of dispersion are listed below:

Absolute measure Relative measures

Range Coefficient of Range
Quartile deviation Coefficient of Quartile deviation
Average deviation Coefficient of Average deviation
Standard deviation Coefficient of Variation
4.6 Range and coefficient of range

Range: This is the simplest possible measure of dispersion and is defined as the
difference between the largest and smallest values of the variable.

In symbols, Range = L – S.

Where, L = Largest value.

S = Smallest value.

In individual observations and discrete series, L and S are easily identified. In

continuous series, the following two methods are followed.

Method 1:
L = Upper boundary of the highest class.
S = Lower boundary of the lowest class.
Method 2:
L = Mid-value of the highest class.
S = Mid-value of the lowest class.
Co-efficient of Range: The relative measure corresponding to range, called the
coefficient of range, is obtained by applying the following formula:

Example: Let us consider the following data.

7, 9, 6, 8, 11, 10, 4
Here,
Largest value, L=11
Smallest value, S = 4.

Range = L – S = 11- 4 = 7

Merits and Demerits of Range:

Merits:
1. It is simple to understand.
2. It is easy to calculate.
3. In certain types of problems like quality control, weather forecasts, share price
analysis, et c., range is most widely used.

Demerits:
1. It is very much affected by the extreme items.
2. It is based on only two extreme observations.
3. It cannot be calculated from open-end class intervals.
4. It is not suitable for mathematical treatment.
5. It is a very rarely used measure.

4.7 Quartile deviation and coefficient of quartile deviation

Quartile Deviation (Q.D): Quartile Deviation is half of the difference between the first
and third quartiles. Hence, it is called Semi Inter Quartile Range.

In Symbols,

Among the quartiles Q1, Q2 and Q3, the range Q3 - Q1 is called inter quartile range and
, Semi inter quartile range.

Co-efficient of Quartile Deviation: The relative measure corresponding to quartile

deviation, called the coefficient of quartile deviation, is obtained by applying the
following formula:

Example: For the data given below, find the quartile deviation and coefficient of quartile
deviation.
Class 351 – 500 501 – 650 651 – 800 801 – 950 951 – 1100
Frequency 48 189 88 47 28

Solution: Table for calculation:

Class Frequency, Real class Cumulative
f frequency, cf
351 – 500 48 350.5 – 500.5 48
501 – 650 189 500.5 – 650.5 237
 651 – 800 88 650.5 – 800.5 325
801 – 950 47 800.5 – 950.5 372
951 – 1100 28 950.5 – 1100.5 400
Total N = 400

We know,

Where, L = Lower limit of the quartile class

= cumulative frequency preceding the quartile class
c = width of the quartile class
= frequency in the quartile class.
N= total frequency

Location of Q1 = size of N/4 observation

= size of 400/4 observation
= size of 100th observation

So, the first quartile class is 500.5 – 650.5

Therefore,

= 500.5 + 41.27
= 541.77

Again,
Location of Q3 = size of 3N/4 observation
= size of (3 x 400)/4 observation
= size of 300th observation

So, the third quartile class is 650.5 – 800.5

 Therefore,

= 650.5 + 107.39
= 757.89
Thus,

Merits and Demerits of Quartile Deviation:

Merits:
1. It is Simple to understand.
2. It is easy to calculate.
3. It is not affected by extreme values.
4. It can be calculated for data with open end classes also.

Demerits:
1. It is not based on all the items. It is based on two positional values Q1 and Q3
and ignores the extreme 50% of the items.
2. It is not amenable to further mathematical treatment.
 3. It is affected by sampling fluctuations.

4.8 Average deviation and coefficient of average deviation

Average deviation: Average deviation is obtained by calculating the absolute

deviations of each observation from median or mean and then averaging these
deviations by taking their arithmetic mean. If the deviations are taken from median, the
formula for average deviation is written as follows:

∑| |
(i) For ungrouped data, A.D(Me) =

∑ | |
(ii) For grouped data, A.D(Me) =

If the deviations are taken from mean, the formula for average deviation is written as
follows:
∑| ̅|
(i) For ungrouped data, A.D( ̅ ) =

∑ | ̅|
(ii) For grouped data, A.D( ̅ ) =

Coefficient of average deviation: The relative measure corresponding to average

deviation, called the coefficient of average deviation, is obtained by applying the
following formula:

The coefficient of A.D(Me) =

The coefficient of A.D( ̅ ) =

Example: Calculate average deviation from mean and its coefficient from the
following data.

Income
0 – 10 10 – 20 20 – 30 30 – 40 40 – 50 50 – 60 60 – 70
(in Tk.)
Number of
6 8 10 12 7 4 3
persons
Solution: Table: Calculation of average deviation from mean

Income Number of Class mid-

d= fd | ̅| | ̅|
(in Tk.) persons (f) point (x)
0 – 10 6 5 –3 –18 26 156
10 – 20 8 15 –2 –16 16 128
 20 – 30 10 25 –1 –10 6 60
30 – 40 12 35 = A 0 0 4 48
Ar
40 – 50 7 45 1 7 14 98
ithmetic
50 – 60 4 55 2 8 24 96
mean
60 – 70 3 65 3 9 34 102
∑ = ∑ | ̅| =
Total N = 50
–20 688
∑
̅

Therefore,
∑ | ̅|
( ̅)

( ̅)

Merits and Demerits of A.D:

Merits:
1. It is simple to understand and easy to compute.
2. It is rigidly defined.
3. It is based on all items of the series.
4. It is not much affected by the fluctuations of sampling.
5. It is less affected by the extreme items.
6. It is flexible, because it can be calculated from any average.
7. It is better measure of comparison.

Demerits:
 1. It is not a very accurate measure of dispersion.
2. It is not suitable for further mathematical calculation.
3. It is rarely used. It is not as popular as standard deviation.
4. Algebraic positive and negative signs are ignored. It is mathematically
unsound and illogical.

4.9 Standard deviation and coefficient of variation

Standard deviation: Standard deviation is also called Root-Mean Square Deviation. It

is defined as the positive square-root of the arithmetic mean of the Square of the
deviations of the given observation from their arithmetic mean.

The standard deviation is denoted by the Greek letter (sigma)

Square of standard deviation is called Variance, that is

Variance =

(i) For ungrouped data: If the variable x assumes n values x1, x2,… xn , then the
standard deviation is given by

∑( ̅)
√

Short-Cut method: Under this method an assumed or an arbitrary average

(indicated by A) is used as the basis of calculation of deviations from
individual values. The formula is

∑ ∑
√ ( )

where, A = the assumed mean or any value in x

d=x–A

Example: Calculate the standard deviation from the following data.

14, 22, 9, 15, 20, 17, 12, 11

Solution: Table for calculation

Values, x ̅ ( ̅)
14 –1 1
 22 7 49
9 –6 36
15 0 0
20 5 25
17 2 4
12 –3 9
11 –4 16
∑ = 120 ∑( ̅ ) = 140

We know,
∑
̅

∑( ̅)
√

(ii) For grouped data: The standard deviation for grouped data is obtained from
the following formula
∑ ( ̅)
√

Where, x = the mid-point of individual class

f = the frequency of individual class
N = the sum of the frequencies or total frequencies.

Short-Cut method:
∑ ∑
√ ( )

Where,
 x = the mid-point of individual class
f = the frequency of individual class
N = the sum of the frequencies or total frequencies.
A = any value in x
c = class interval

Coefficient of variation: Coefficient of variation denoted by C.V. is defined by

̅
Note: Coefficient of variation is used in such problems where we want to compare the
variability of two or more than two groups. That groups for which the Coefficient of
variation is greater is said to be more variable or conversely less consistent, less
uniform, less stable or less homogeneous.

On the other hand, the groups for which the Coefficient of variation is smaller is said to
be less variable or conversely more consistent, more uniform, more stable or more
homogeneous.

Example: Calculate mean and standard deviation from the following data.

Income (in Tk.) 0 – 10 10 – 20 20 – 30 30 – 40 40 – 50 50 – 60 60 – 70

Number of
6 8 10 12 7 4 3
persons
Calculate the coefficient of variation.

Solution: Table for calculation

Class
Income Number of
mid-point d= fd fd2
(in Tk.) persons (f)
(x)
0 – 10 5 6 –3 –18 54
10 – 20 15 8 –2 –16 32
20 – 30 25 10 –1 –10 10
30 – 40 35 = A 12 0 0 0
40 – 50 45 7 1 7 7
50 – 60 55 4 2 8 16
60 – 70 65 3 3 9 27
∑ = ∑ =
N = 50
–20 146

We know,
∑
̅
 ∑ ∑
√ ( )

√ ( )

√
√

Example: In two factories A and B located in the same industrial area, the average
weekly wages (in Tk.) and the standard deviations are as follows:

Factory Average Standard Deviation Number of workers

A 34.5 5 476
B 28.5 4.5 524

(i) Which factory A or B pays out a larger amount as weekly wages?

(ii) Which factory A or B has greater variability in individual wages?

Solution: Given that,

N1 = 476, ̅ = 34.5, =5
N2 = 524, ̅ = 28.5, = 4.5

(i) Total wages paid by factory A

= 34.5 x 476
= Tk.16422
 Total wages paid by factory B
= 28.5 x 524
= Tk.14934.
Therefore factory A pays out larger amount as weekly wages.

(ii) C.V. of distribution of weekly wages of factory A and B are

( )
̅

( )
̅

Since C.V. of factory B is greater than C.V of factory A, factory B has greater
variability in individual wages.

Merits and Demerits of Standard Deviation:

Merits:
1. It is rigidly defined
2. Its value is always definite and based on all the observations and the actual
signs of deviations are used.
3. As it is based on arithmetic mean, it has all the merits of arithmetic mean.
4. It is the most important and widely used measure of dispersion.
5. It is possible for further algebraic treatment.
6. It is less affected by the fluctuations of sampling and hence stable.
7. It is the basis for measuring the coefficient of correlation and sampling.

Demerits:
1. It is not easy to understand.
2. It is difficult to calculate.
3. It gives more weight to extreme values because the values are squared up.
 4. As it is an absolute measure of variability, it cannot be used for the purpose of
comparison.

4.10 Mathematical properties of standard deviation

Some important mathematical properties of standard deviation are given below:
1. If a series of N1 items has mean ̅ and standard deviation and another series
of N2 items has mean ̅ and standard deviation , the combined mean and
combined standard deviation can be obtained by the following formulae:
̅ ̅
̅

where, d1 = | ̅ ̅ | and d2 = | ̅ ̅ |

2. The standard deviation of the first n natural numbers can be found by the
following formula:

√ ( )

3. The sum of the squared deviations of the individual observations from the
arithmetic mean is always minimum. In other words, the sum of the squared
deviations taken from any value other than the arithmetic mean will be higher.

4. Standard deviation is independent of change of origin but not scale.

5. For a symmetrical distribution , the following area relationships hold good:

Mean covers 68.27% observations.

Mean covers 95.45% observations.
Mean covers 99.73% observations.

4.11 Correcting incorrect value of Standard Deviation

Mistakes in calculation are always probable. It happens while calculating mean and
standard deviation, we unconsciously copy out wrong observation. In such case if the
entire calculation are done again, it become too difficult a task. To obtain correct mean
we have to find out correct ∑ by deducting wrong observations from original ∑ and
adding to it with correct observations. Similarly, to obtain correct standard deviation we
have to find out correct ∑ by deducting squares of wrong observations from original
∑ and adding to it with the squares of correct observations.
Example: Mean and standard deviation of 100 items are found to be 40 and 5. If two
observations are wrongly taken as 41 and 61 instead of 14 and 16 at the time of
calculation, find the correct mean and correct standard deviation.

Solution: Given that,

Number of observations, n = 100
Incorrect mean, ̅ = 40
Incorrect S.D. = 5

So, incorrect sum, ∑ ̅

Corrected sum, ∑ =∑ – wrong data + correct data
= 4000 – 41 – 61 + 14 +16
= 3928
Corrected mean,
∑
̅

Again,

∑
√ ( ̅)

∑
( ̅)

∑
( )

Corrected sum of square,

∑ ∑ ( ) ( ) ( ) ( )
= 162500 – 1681 – 3721 + 196 + 256
 = 157550
Corrected standard deviation,
∑
√ ( ̅)

√ ( )

√
√

4.12 Differences between Mean Deviation and Standard Deviation

Differences between mean deviation and standard deviation are given below:
Mean Deviation Standard Deviation
1. Mean deviations are calculated 1. Standard deviations are
from mean, median or mode. calculated from mean only.
2. It is based on simple average of 2. It is based on the square root of
the sum of absolute deviations. the average of the squared
deviations.
3. The algebraic signs have to be 3. The plus or minus signs need not
ignored, that is, only values of be omitted, because squared
deviations are taken. deviations are taken here.
4. It lacks mathematical properties 4. It is mathematically sound since
since it takes absolute deviations algebraic signs are not ignored here.
only.
5. It is simple to calculate when 5. It is suitable in all cases, whether
mean is a round number. the mean is a round number or a
fraction, since a short-cut method is
also available.

4.13 Relation between Measures of Dispersion

In a bell-shaped symmetrical distribution, there is a fixed relationship between the three
most commonly used measures of dispersion. The quartile deviation is smallest, the
mean deviation next and the standard deviation is largest in the following proportions:
 4.14 Solved Problems

Rule # 1: Determination of Range, Coefficient of Range, Quartile Deviation (Q.D.)

and Coefficient of Q.D.

Range = L – S.
where, L = Largest value.
S = Smallest value.
In continuous series,
L = Upper boundary of the highest class.
S = Lower boundary of the lowest class.

Where, Q1 = first quartile and Q3 = third quartile

Problem-1: Consider the following distribution:

x 4 8 15 16 20 24 28 32 36
f 4 20 25 40 50 41 36 15 10
(i) Calculate range and coefficient of range.
(ii) Calculate Q.D and coefficient of Q.D.

Solution: (i) Given that,

Largest value, L = 36
Smallest value, S = 4

Therefore, Range = L – S = 36 – 4 = 32

(ii) Table for calculation:

x F Cumulative frequency, c.f
4 4 4
8 20 24
15 25 49
16 40 89
20 50 139
24 41 180
28 36 216
32 15 231
36 10 241
Total N = 241

We know,

Location of Q1 = (N+1)/4 th observation

= (241+1)/4 th observation
= 60.5 th observation
Q1 = 16

Location of Q3 = 3(N+1)/4 th observation

= 3(241+1)/4 th observation
= 181.5 th observation
Q3 = 28
Therefore,

Problem-2: Consider the following distribution:

Class 4–8 8 – 12 12 – 16 16 – 20 20 – 24 24 – 28 28 – 32 32 – 36 36 – 40
Frequency 6 10 18 30 14 12 10 6 2

(i) Calculate range and coefficient of range.

(ii) Calculate inter quartile range, semi-inter quartile range/Q.D and coefficient of Q.D.

Solution: (i) Given that,

Upper limit of last class, L = 40
Lower limit of first class, S = 4

Range = L – S = 40 – 4 = 36
(ii) Table for calculation:
Class Frequency, f Cumulative frequency, cf
4–8 6 6
8 – 12 10 16
12 – 16 18 34
16 – 20 30 64
20 – 24 14 78
24 – 28 12 90
28 – 32 10 100
32 – 36 6 106
36 – 40 2 108
Total N = 108
We know,

Location of first quartile = size of N/4 th observation

= size of 108/4 th observation
= size of 27th observation

So, the first quartile class is 12 – 16.

1st quartile,

Location of third quartile = size of 3N/4 th observation

= size of (3 x108)/4 th observation
= size of 81st observation

So, the third quartile class is 24 – 28.

3rd quartile,
 Therefore,

Rule # 2: Determination of Average Deviation (A.D) and Coefficient of A.D.

∑| |
• For ungrouped data, A.D(Me) =

∑ | |
• For grouped data, A.D(Me) =

The coefficient of A.D(Me) =

If the deviations are taken from mean, the formula for average deviation is written as
follows:
∑| ̅|
• For ungrouped data, A.D( ̅ ) =

∑ | ̅|
• For grouped data, A.D( ̅ ) =

The coefficient of A.D( ̅ ) =

Problem-3: From the following data:

Income
0 – 10 10 – 20 20 – 30 30 – 40 40 – 50 50 – 60 60 – 70
(in Tk.)
Number of
6 8 10 12 7 4 3
persons

(i) Calculate average deviation from mean and its coefficient.

(ii) Calculate average deviation from median and its coefficient.

Solution: (i) Table: Calculation of average deviation from mean

Income Number of Class mid-

d= Fd | ̅| | ̅|
(in Tk.) persons (f) point (x)

0 – 10 6 5 –3 –18 26 156
10 – 20 8 15 –2 –16 16 128
20 – 30 10 25 –1 –10 6 60
30 – 40 12 35 = A 0 0 4 48
40 – 50 7 45 1 7 14 98
50 – 60 4 55 2 8 24 96
60 – 70 3 65 3 9 34 102
∑ = ∑ | ̅|
N = 50
–20 =688

Arithmetic mean
∑
̅

Therefore,
∑ | ̅|
( ̅)
 ( ̅)

(ii) Table: Calculation of average deviation from median

Income Number of Class mid- Cumulative

| | | |
(in Tk.) persons (f) point (x) frequency, cf
0 – 10 6 5 6 25.83 154.98
10 – 20 8 15 14 15.83 126.64
20 – 30 10 25 24 5.83 58.3
30 – 40 12 35 = A 36 4.17 50.04
40 – 50 7 45 43 14.17 99.19
50 – 60 4 55 47 24.17 96.68
60 – 70 3 65 50 34.17 102.51
∑ | |
N = 50
=688.34

Location of median = size of N/2 th observation

= size of 50/2 th observation
= size of 25th observation
So, the median class is 30 – 40.

Average deviation from median,

∑ | |
( )
 ( )

Problem-4: Calculate mean deviation for the following data:

100,150,200,250,360,490,500,600,671
Also calculate coefficients of M.D.

Solution: Table for calculation

x | ̅|
100 269
150 219
200 169
250 119
360 9
490 121
500 131
600 231
671 302
∑ = 3321 ∑| ̅ | = 1570

∑
̅

∑| ̅|

̅
Rule # 3: Determination of Standard Deviation (S.D) and Coefficient of Variation (C.V)
∑( ̅) ∑
• For ungrouped data: S.D, √ √ ( ̅)

Short-Cut method, √∑ (
∑
)
where, A = the assumed mean or any value in x
d=x–A
∑ ( ̅)
• For grouped data: S.D, √

Short-Cut method, √∑ (
∑
)

Where,
x = the mid-point of individual class
f = the frequency of individual class
N = the sum of the frequencies or total frequencies.
A = any value in x
c = class interval

• Coefficient of Variation, C.V = ̅

Problem-5: The table below gives the marks obtained by 10 students in Business
Statistics. Calculate standard deviation.

Student No.: 1 2 3 4 5 6 7 8 9 10
Marks: 43 48 65 57 31 60 37 48 78 59

Solution: Table for calculation:

Student No. Marks, x d=x–A d2
1 43 –14 256
2 48 –9 81
3 65 8 64
4 57 = A 0 0
5 31 –26 676
 6 60 3 9
7 37 –20 400
8 48 –9 81
9 78 21 441
10 59 2 4
Total ∑ = –44 ∑ = 1952

∑ ∑
√ ( )

√ ( )

√
√

Problem-6: Calculate Standard deviation from the following data.

x 20 22 25 31 35 40 42 45
f 5 12 15 20 25 14 10 6

Solution: Table for calculation

x f d=x–A fd fd2
20 5 –11 –55 605
22 12 –9 –108 972
25 15 –6 –90 540
31 = A 20 0 0 0
35 25 4 100 400
40 14 9 126 1134
42 10 11 110 1210
45 6 14 84 1176
Total N = 107 ∑ = 167 ∑ = 6037

∑ ∑
√ ( )

√ ( )

√
 √

Problem-7: Calculate mean, standard deviation, variance and coefficient of variation

from the following data.
Income (in Tk.) 0 – 10 10 – 20 20 – 30 30 – 40 40 – 50 50 – 60 60 – 70
Number of
6 8 10 12 7 4 3
persons
Solution: Table for calculation
Income Class mid- Number of
d= fd fd2
(in Tk.) point (x) persons (f)
0 – 10 5 6 –3 –18 54
10 – 20 15 8 –2 –16 32
20 – 30 25 10 –1 –10 10
30 – 40 35 = A 12 0 0 0
40 – 50 45 7 1 7 7
50 – 60 55 4 2 8 16
60 – 70 65 3 3 9 27
N = 50 ∑ = –20 ∑ = 146

We know,
∑
̅

∑ ∑
√ ( )

√ ( )

√
√
 ( )

Problem-8: A purchasing agent obtained samples of 60 watt bulbs from two companies.
He had the samples tested in his own laboratory for length of life with the following
results:
Samples from
Length of life (in hours)
Company A Company B
1700 – 1900 10 3
1900 – 2100 16 40
2100 – 2300 20 12
2300 – 2500 8 3
2500 – 2700 6 2

(i) Which company’s bulbs do you think better in terms of average life?
(ii) If the prices of both types are same, which company’s bulbs would you buy
and why?

Solution: For Company A: Calculation of mean and coefficient of variation

Length of life (in Mid-point, x Frequency, fd fd2
d=
hours) f
1700 – 1900 1800 10 –2 –20 40
1900 – 2100 2000 16 –1 –16 16
2100 – 2300 2200 = A 20 0 0 0
2300 – 2500 2400 8 1 8 8
2500 – 2700 2600 6 2 12 24
N = 60 ∑ = –16 ∑ = 88

∑
̅
 ∑ ∑
√ ( )

√ ( )

√
√

For Company B: Calculation of mean and coefficient of variation

Length of life (in Mid-point, x Frequency, fd fd2
d=
hours) f
1700 – 1900 1800 3 –2 –6 12
1900 – 2100 2000 40 –1 –40 40
2100 – 2300 2200 = A 12 0 0 0
2300 – 2500 2400 3 1 3 3
2500 – 2700 2600 2 2 4 8
N = 60 ∑ = ∑ =
–39 63

∑
̅

∑ ∑
√ ( )

√ ( )
 √
√

(i) Since average length of life is greater in case of company A, hence bulbs of
company A are better.
(ii) Coefficient of variation is less for company B. Hence if prices are same, we
will prefer to buy company B’s bulbs because their burning hours are more
uniform.

Problem-9: In two factories A and B located in the same industrial area, the average
weekly wages (in Tk.) and the standard deviations are as follows:
Factory Average Standard Deviation Number of workers
A 34.5 5 476
B 28.5 4.5 524

(iii) Which factory A or B pays out a larger amount as weekly wages?

(iv) Which factory A or B has greater variability or less stable in individual wages?

Solution: Given that,

N1 = 476, ̅ = 34.5, =5
N2 = 524, ̅ = 28.5, = 4.5
(iii) Total wages paid by factory A
= 34.5 x 476
= Tk.16422

Total wages paid by factory B

= 28.5 x 524
= Tk.14934.

Therefore factory A pays out larger amount as weekly wages.

(iv) C.V. of distribution of weekly wages of factory A and B are

 ( )
̅

and
( )
̅

Since C.V. of factory B is greater than C.V of factory A, factory B has greater
variability in individual wages.

Problem-10: Prices of a particular commodity in five years in two cities are given below:
Price in city A 20 22 19 23 16
Price in city B 10 20 18 12 15

Which city has more stable prices?

Solution: Table for calculation:

City A City B
Prices, x ̅ ( ̅) Prices, y ̅ ( ̅)
20 0 0 10 -5 25
22 2 4 20 5 25
19 -1 1 18 3 9
23 3 9 12 -3 9
16 -4 16 15 0 0
∑ = 100 ∑( ̅ ) = 30 ∑ = 75 ∑( ̅) = 68

For city A:
∑
̅
 ∑( ̅)
√

( )
̅

For city B:
∑
̅

∑( ̅)
√

( )
̅

City A had more stable prices than City B, because the coefficient of variation is less in
City A.

Rule # 4: Determination of combined mean and combined standard deviation

 ̅ ̅
Combined mean, ̅

( ) ( )
Combined standard, √ √

where, d1 = | ̅ ̅ | => ( ̅ ̅ )
d2 = | ̅ ̅ | => ( ̅ ̅ )

Problem-11: Particulars regarding income of two villages are given below.

Village Average income Variance of income Number of people
A 175 100 600
B 186 81 500

Compute combined mean and combined Standard deviation.

Solution: Given that,
N1 = 600, ̅ = 175, = 100 => = 10
N2 = 500, ̅ = 186, = 81 => = 9

̅ ̅
̅

( ) ( )
√

( ̅ ̅ ) ( ) ( )
( ̅ ̅ ) ( )
Therefore,

( ) ( )
√
 ( ) ( )
√

Rule # 5: Correcting incorrect value of standard deviation

Problem-12: Mean and standard deviation of 100 items are found to be 30 and 10. If
two observations are wrongly taken as 31 and 71 instead of 13 and 17 at the time of
calculation, find the correct mean and correct standard deviation.

Solution: Given that,

Number of observations, n = 100
Incorrect mean, ̅ = 30
Incorrect S.D. = 10

So, incorrect sum, ∑ ̅

Corrected sum, ∑ =∑ – wrong data + correct data

= 3000 – 31 – 71 + 13 +17
= 2928

Corrected mean,
∑
̅

Again,
 ∑
√ ( ̅)

∑
( ̅)

∑
( )

Corrected sum of square,

∑ ∑ ( ) ( ) ( ) ( )
= 100000 – 961 – 5041 + 169 + 289
= 94456
Corrected standard deviation,
∑
√ ( ̅)

√ ( )

√
√
 Exercise-4

Theoretical
Q.1 What do you mean by measures of dispersion? Write down the characteristics of
a good measure of dispersion.
Q.2 Discuss different types of measures of dispersion.
Q.3 Define range and coefficient of range. Write down the merits and demerits of
range.
Q.4 Define quartile deviation and coefficient of quartile deviation. Write down the
merits and demerits of quartile deviation.
Q.5 Define average deviation and coefficient of average deviation. Write down the
merits and demerits of average deviation.
Q.6 Define standard deviation and coefficient of variation. Write down the merits and
demerits of standard deviation.
Q.7 Write down the mathematical properties of standard deviation.
Q.8 Write down the differences between Mean Deviation and Standard Deviation.
Q.9 Why is the standard derivation the most widely used measure of dispersion?
State the limitations of Range. [NU BBA 2015]
Q.10 Distinguish between Absolute and relative measure of dispersion.
[NU BBA 2014]
Q.11 What is the standard deviation? Why standard deviation is most widely used as a
measure of variations? [NU BBA 2013]
Q.12 Explain how measure of central tendency & measure of variation
complement each other in describing mass data.
Q.13 What are the requisites of a good measure of dispersion? Why is the
standard deviation usually chosen as a measure of variation? Explain how
measure of central tendency and measure of variation complement each other in
describing mass of data.

Mathematical
Problem-1: Compute inter quartile range, semi-inter quartile range/quartile deviation and
its coefficient from the following data:
Marks 0 – 20 20 – 40 40 – 60 60 – 80 80 – 100 100 – 120
No. of
12 20 10 5 7 8
Students
[54.5; 27.25; .5369]

Problem-2: Compute quartile deviation and its coefficient from the following data:
 Mid-value 14 16 18 20 22 24 26
Frequency 12 14 50 60 32 20 10

Problem-3: Calculate mean deviation and its coefficient from the following data:
Class 120 – 140 140 – 160 160 – 180 180 – 200 200 – 220
Frequency 5 8 10 6 4
[167.575; 19.90; 0.118]

Problem-4: Calculate average deviation from median and its coefficient from the
following data.
Sales
10 – 20 20 – 30 30 – 40 40 – 50 50 – 60
(in thousand Tk.)
Number of Shops 3 6 11 3 2
[33.18; 8.1096; 0.2444]

Problem-5: You are given the data pertaining to kilowatt hours of electricity consumed
by 100 persons in Dhaka.

Consumption (K. Watt hours) Number of users

0 but less than 10 6
10 but less than 20 25
20 but less than 30 36
30 but less than 40 20
50 but less than 50 13

Calculate (i) the mean, (ii) the standard deviation and (iii) the range within which middle
50% of the consumers fall.
[25.9; 10.96; 16.4]

Problem-6: A purchasing agent obtained sample of incandescent lamps from two

suppliers. He had the samples tasted in his own laboratory for the length of life with the
following result:-
Sample from
Length of life (in hours)
Company-A Company-B
700-900 10 3
900-1100 16 42
1100-1300 28 12
1300-1500 8 3
(i) Which company’s lamp do you think are better in terms of average life?
(ii) If prices of both types are the same which company’s lamps would you buy and
why? [10300;12500;26.175%;23.29%]
Problem-7: The mean and standard of a sample of size 10 were found to be 9.5 and
2.5 respectively. Later on, an additional observation became available. This was 15.0
and was included in the original sample. Find the mean and the standard deviation of
the 11 observations. [10;2.86]

Problem-8: Calculate mean deviation for the following frequency distribution:

No. of colds No. of
experienced in 12 persons
months
0 15
1 46
2 91
3 160
4 100
[1.47]
No. of colds No. of
experienced in 12 persons
months
5 90
6 82
7 26
8 13
9 2

Problem-9: Calculate average deviation from mean and its coefficient from the following
data.
Profits
10 – 20 20 – 30 30 – 40 40 – 50 50 – 60
(in thousand Tk.)
Number of companies 3 6 11 3 2
[33; 8.16; 0.247]

Problem-10: The mean of 5 observations is 15 and the variance 9. If two more

observations having values -3 and 10 are combined with these 5 observations, what will
be the mean and variance of 7 observations? [11.71; 17.76]
Problem-11: In two factories A and B located in the same industrial area, the average
weekly wages (in Tk.) and the standard deviations are as follows:

Factory Average Standard Deviation Number of workers

A 34.5 5 476
B 28.5 4.5 524

Compute combined mean and combined Standard deviation.

[31.356; 5.61]

Problem-12: The mean and standard deviation of a set of 100 observations were
worked out as 40 and 5 respectively by a computer which by mistake took the value 50
in place of 40 for one of the observation. Find the correct mean and variance.[39.9;
23.99]
Problem-13: The mean and standard deviation of 20 items are found to be 10 and 2
respectively. At the time of checking it was found that one item 8 was incorrect.
Calculate the mean and standard deviation if (i) the wrong item is omitted, (ii) it is
replaced by 12. [10.1;2.26;10.2;2]

Problem-14: The profits (inTk. Lakhs) earned by 100 companies during 2014-2015 are
shown below:
Profits(Tk.lakhs) No. of companies
20-30 4
30-40 8
40-50 18
50-60 30
60-70 15
70-80 10
80-90 8
90-100 7

Using above data calculate:

(i) Mean, (ii)Median and
(iii) Standard deviation
[59.1; 56.67; 17.56]
Problem-15: Find Range and M.D. from the following data and show that
R > M.D.

Class 100-199 200-299 300-399 400-499 500-599 600-699

Frequency 15 31 60 45 25 34

Problem-16: For a group of 50 male workers, the mean and standard deviation of their
daily wages are 80 tk. And 10 tk. Respectively. For a group of 40 female workers, these
are 70 tk. And 9 tk. Respectively. Find combined mean and standard deviation of daily
wages.[75.56; 10.78]

Problem-17: Lives of two models of refrigerators in a recent survey are:

Number of Refrigerator
Life in years
Model- A Model- B
0–2 5 2
2–4 16 7
4–6 13 12
6–8 7 19
8 – 10 5 9
 10 - 12 4 1

What is the average life of each refrigerator? Which model has greater
uniformity?[5.12;6.16;54.9%;36.2%]

Problem-18: For two firms A and B belonging to the same industry, the following details
are available.
Firm A Firm B
No of Employees 100 200
Average wage monthly Tk.2400 Tk. 1800
S.D. Tk.60 Tk.80

(i) Which firm pays out larger amount as wages?[240000; 360000]

(ii) Which firm shows greater variability in the distribution of wages?
[2.5%; 4.44%]
(iii) Find average monthly wage and standard deviation of all the employees in
both the firms. [2000; 292.34]
Problem-19: The following data represents the midterm scores of the ten students in an
exam
25,28,15,12,35,26,32,30,27,20
Find the mean deviation from mean and standard deviation.

Problem-20: In a survey, data on daily wages paid to workers of two factories A and B
are as follows:
No. of workers
Daily wages(in Takas)
Factory- A Factory- B
20-30 15 25
30-40 30 40
40-50 44 60
50-60 60 35
60-70 30 20
70-80 14 15
80-90 7 5

Find out:
a) Which factory pays higher average wages? By how much?
b) Wages of which have greater variability.
c) Average monthly wage and standard deviation of all the workers in both the
factories
Problem-21: The price of a share in Dhaka & Chittagong stock exchange during the
last 10 months are recorded below:

Month Dhaka Chittagong Month Dhaka Chittagong

January 105 108 June 127 125
February 130 127 July 108 115
March 125 120 August 110 120
April 110 130 September 102 105
May 130 110 October 112 145

i) Determine the mean share price for each of the markets.

ii) Determine the standard deviation of the price of share in each market.
(iii) In which market the share price is more stable?
Problem-22: An organization has two units A and B. An analysis of weekly wages paid
to workers gave the following results:-
Unit A Unit B
Number of wage
500 670
earners
Standard deviation Tk. 9 Tk. 10
Average weekly wage Tk. 65 Tk. 72
a. Which unit pays larger amount as weekly wages?
b. In which unit there is greater variability in wage distribution?
c. Find the combined average wage & combined standard deviation of
wages of the whole organization (NU BBA2010)
[32500; 48240; 3.84%; 13.88%; 69.01; 10.19]

Problem-23: From the following data show that M.D > Range
( -5 13 12 15 0 16 )

Problem-24: An organization has two units A and B. an analysis 0f weekly wages paid
to workers gave the following results:-
Unit A Unit B
Number of wages earners 600 500
Standard deviation Tk. 100 Tk. 81
Average weekly wages Tk.1750 Tk.1860
(a) Which units pay larger amount as weekly wages?
(b) In which unit there is greater variability in wage distribution?
[5.71;4.35]
(c) Find the combined average wage & combined standard deviation
of wages of the whole organization. [1800;106.94]
Problem-25: An analysis of production rejects resulted in the following figures:
No. of rejects per
21 – 25 26 – 30 31 – 35 36 – 40 41 – 45 46 – 50 51 – 55
operator
No. of operator 5 15 28 42 15 12 3
Calculate mean and standard deviation
Problem-26: In a survey, data on daily wages paid to workers of a factory are as
follows:
Daily Wages (Rs.) No. of workers
20-30 15
30-40 30
40-50 44
50-60 60
60-70 30
70-80 14
80-90 7

Calculate mean and standard deviation of daily wage. [51.50; 13.48]

Problem-27: Given below are the monthly household incomes (in TK.) of 10 families:
10648, 17416, 6517, 13555, 14821, 9226, 15936, 11800, 18527, 12222.
Compute the range and quartile deviation.

Problem-28: The following distribution shows the turnover of the branches of a group of
multiple-shops on March 2009
Turnover (in taka lakhs) No of Shops
5 and under 10 8
10 and under 15 18
15 and under 20 42
20 and under 25 62
25 and under 30 30
30 and under 35 10
35 and over 4

Using above data calculate:

(i) Mean, Median and Mode
(ii) Standard deviation and
(iii) Coefficient of variation.

Problem-29: For a group of 50 male workers, the mean and standard deviation of their
daily wages are 54.1 tk. And 8 tk. Respectively. For a group of 100 female workers,
these are 50.3 tk. And 7 tk. Respectively. Find combined mean and standard deviation
of daily wages. [51.57;7.56]

Problem-30: The mean and standard derivation of a set of 100 observations were
found out as 50 and 10 respectively which by mistake took the values 60 in place of 50
for one of the observations. Find the correct mean and variance. (NU BBA 2015)
[49.9; 89.99]

Problem-31: Mean and standard deviation of 100 items are found to be 40 and 10. If at
the time of calculation two items are wrongly taken by 30 and 48 instead of 35 and 45.
Find the correct mean and standard deviation. (NUBBA 2014) [40.02;9.94]

Problem-32: The following are the scores of batsman A and B for 10 innings:-

Innings 1 2 3 4 5 6 7 8 9 10
A 40 58 45 60 50 45 70 60 45 75
B 80 40 25 90 10 65 12 70 25 90

Who is more consistent batsman?

(NU BBA 2014) [20.25%;59.54%]

Problem-33: A company has three establishments E1, E2 and E3 in three locations.

The weekly salary paid to the employees of the three locations is given below:-
E1 E2 E3
Number of employees 20 25 20
Average weekly salary (BDT.) 305 300 340
Standard deviation (BDT.) 50 40 45

Find the average and standard deviation of the weekly salary of all 65 employees in the
company. Which location shows greater variability? (NU BBA 2013) [320;48.69]

Problem-34: The prices of a tea company share in Dhaka & Chittagong Stoke
Exchange during the last 10 months are recorded below:-
Month Dhaka Chittagong Month Dhaka Chittagong
January 105 108 June 127 125
February 120 117 July 109 125
March 115 120 August 110 120
April 118 130 September 104 110
May 130 100 October 112 135

(i) Determine the mean share price for each of the markets.
(ii) Determine the standard deviation of the price of share in each market.
(iii) In which market the share price is more stable?
(NU BBA 2012) [115;119;7.24;8.48]

Problem-35: For two factories A and b belonging to the same industry, the following
details are available:-
Factory A Factory B
No. of employees 100 80
Average wage monthly Tk. 4600 Tk. 4900
S.D Tk. 500 Tk. 400
(i) Which factory A or B pays larger amount as monthly wages?
(ii) Which factory shows greater variability in the distribution of wages?
(iii) What is the mean and standard deviation of all the workers in two factory taken
together? (NU BBA 2011) [460000;392000;4733.33;484.15]

Problem-36: A purchasing agent obtained sample of incandescent lamps from two

suppliers. He had the samples tasted in his own laboratory for the length of life with the
following result:-
Sample from
Length of life (in hours)
Company-A Company-B
700-900 10 3
900-1100 16 42
1100-1300 28 12
1300-1500 8 3

(i) Which company’s lamp do you think are better in terms of average life?
(ii) If prices of both types are the same which company’s lamps would you buy
and why?(NU BBA 2015)[1109.67; 1050; 16.40%; 11.85%]