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Section: BSA 2C
INTRODUCTION
The most important use of measures of dispersion is that they help to get an
understanding of the distribution of data. As the data becomes more diverse, the value
of the measure of dispersion increases. In this article, we will learn about measures of
dispersion, their types along with examples as well as various important aspects
related to these measures.
Measures of dispersion are non-negative real numbers that help to gauge the
spread of data about a central value. These measures help to determine how stretched
or squeezed the given data is. There are five most commonly used measures of
dispersion. These are
Range
Variance
standard deviation
mean deviation, and
quartile deviation.
DEFINITION
The measures of dispersion can be classified into two broad categories. These are
absolute measures of dispersion and relative measures of dispersion. Range,
variance, standard deviation and mean deviation fall under the category of absolute
measures of deviation. These measures have the same unit as the data that is being
scrutinized. Coefficients of dispersion are relative measures of deviation. Such
dispersion measures are always dimensionless. The upcoming sections will further
elaborate on these measures.
MEASURES OF DISPERSION
Variance Coefficient of
Variation
RANGE VARIANCE
Range = Highest value - Lowest value Population Variance:
STANDARD DEVIATION
Population Deviation:
Sample Variance:
Sample Deviation:
MEAN DEVIATION
QUARTILE DEVIATION
2. Find the Variance and Standard Deviation of the following numbers that obtained by
sampling a population.
2, 4, 7, 12, 15
MEAN
VARIANCE
MEAN
STANDARD
DEVIATION
EXAMPLE OF MEASURES OF DISPERSION (GROUPED DATA)
Find the range, standard deviation and variance of the scores of 40 students in a
60-point quiz.
SCORES FREQUENCY LB UB
53 - 58 3 52.5 58.5
47 - 52 4 46.5 52.5 Range = Highest Class Boundaries
- Lowest Class Boundaries
41 - 46 1 40.5 46.5
35 - 40 2 34.5 40.5 Range = 58.5 - 4.5
Range = 54
29 - 34 10 28.5 34.5
23 - 28 11 22.5 28.5
17 - 22 4 16.5 22.5
11 - 16 3 10.5 16.5
5 - 10 2 4.5 10.5
CLASS
SCORES FREQUENCY
(f) MARK (x) fx (x - x̅ )^2 f(x - x̅ )^2
N
Mean = 1212
= 6278.4 = √ 160.98
40
40-1
Mean = 30.3 = 12.69
= 6278.4
36
= 160.98
MEASURES OF SHAPES
INTRODUCTION
Measures of Shape as a descriptive statistics provide us ways to understand how
the data points in a dataset are distributed and help us in understanding patterns that
may be hidden and may be understood after the data is presented on a graph This
blog investigates data and the numerous shapes that it might take. It is vital to highlight
that only some types of data may be explained, such as quantitative data that follows a
logical sequence and has some form of 'weight,' but qualitative data cannot be utilized
since its values lack any 'weight.'
DEFINITION
The histogram can give you a general idea of the shape, but two numerical
measures of shape give a more precise evaluation: symmetric distribution,
asymmetric distribution and other distribution like kurtosis.
1. SYMMETRIC DISTRIBUTION
A Distribution can be called Symmetrical when the two sides of the distribution are
a mirror images of each other, so if you separate the distribution from the mean, what
you see on the left side of the distribution is exactly what you see on the right side of
the distribution.
2. ASYMMETRIC DISTRIBUTION
If the collected sample data is systematically biased and includes data points that
have certain particular characteristics then this causes the distribution to become
asymmetrical. In Asymmetric Distribution, the two sides do not mirror each other.
SKEWED DISTRIBUTION
Skew is a characteristic often used to describe the distribution of values and in
Asymmetric Distributions, the distribution can be skewed either Positively or Negatively
and this happens when the more frequent values get cluttered around the high or low
ends of the x-axis. Such a shape is one of the most common shapes when a
distribution deviates from the normal distribution. In such a situation, the mean,
median and mode do not coincide with each other. The easiest way of identifying
whether a distribution is skewed or not is to construct a histogram and look at the
shape of the distribution. If it is skewed then it can either be a Positively or can be a
Negatively Skewed Distribution.
3. OTHER DISTRIBUTION
KURTOSIS
Like skewness, Kurtosis is a
descriptor of shape and it describes the
shape of the of the distribution in terms
of height or flatness. Some of the types
of Kurtosis are Leptokurtic, Platykurtic
and Mesokurtic.
LEPTOKURTIC
When there is a positive excess of kurtosis, the shape of the distribution is called
Leptokurtic. To understand this in terms of shape, it has fatter tails and if compared to
a normal distribution it has a similar peak (to be precise, such a distribution has higher
peak than what is found in a normal bell-shaped distribution and significantly higher if
compared to a Platykurtic distribution) and has values clustered around the centre
(mean).
PLATYKURTIC
When there is a negative excess of kurtosis, the shape of the distribution is called
Platykurtic.
The data points are highly dispersed along the X-axis that results in thinner tails
when compared to a normal distribution and has very few values clustered around the
centre (mean). Such a distribution will have little central tendency.
MESOKURTIC
This is when the distribution is normal. Here the tails of the distribution are neither
too thin nor they are too thick and also the scores are equally divided with scores
neither being clustered around the center nor being too scattered.
FORMULAS
SKEWNESS SKEWNESS
KURTOSIS KURTOSIS
= 3(48.6 - 39)
39.5
Skewness = 0.73
EXAMPLE OF MEASURES OF SHAPE (SKEWNESS AND KURTOSIS)
MEAN VARIANCE
X = (12+13+54+56+25) S2 = (12–32)^2+(13–32)^2+(54–32)^2+(56–32)^2+(25–32)^2
5 4
X = 160 S2 = 467.5
5
X = 32 STANDARD DEVIATION
s = √467.5
SKEWNESS s = 21.62
KURTOSIS
Skewness is positive.
Hence, the data has a
positively skewed
distribution.
we subtract 3 from the sample kurtosis and get
the excess kurtosis.
excess kurtosis=0.7861–3=−2.2139
Since the excess kurtosis is negative, we have a
platykurtic distribution.
REFERRENCES:
Kurtosis and Skewness Example Question | CFA Level I. (n.d.). AnalystPrep. Retrieved
October 8, 2022, from https://analystprep.com/cfa-level-1-exam/quantitative-
methods/kurtosis-and-skewness-types-of-distributions/
Turney, S. (2022, May 10). Skewness | Definition, Examples & Formula. Scribbr.
Retrieved October 5, 2022, from https://www.scribbr.com/statistics/skewness/
Turney, S. (2022, June 27). What Is Kurtosis? | Definition, Examples & Formula. Scribbr.
Retrieved October 5, 2022, from https://www.scribbr.com/statistics/kurtosis/