STATAPP: STATISTICAL ANALYSIS WITH SOFTWARE APPLICATION

CHAPTER 6: Measures of Variability

MX. LEOPOLDO A. LIANGCO JR – DHVSU COLLEGE OF BUSINESS STUDIES
BS ACCOUNTANCY | 1ST SEMESTER A.Y. 2022-2023

Relative Measures of Variability (Dispersion) Determine the mean deviation for each branch. Comment
• The measure of dispersion shows the scatterings on the difference of the mean deviation.
of the data. It tells the variation of the data from
one another and gives a clear idea about the CLARK
distribution of the data. Numbers Sold Each value – mean Absolute Deviation
• If two or more distributions of different units are to 20 20-50=-30 30
be compared, it is more appropriate to use the 40 40-50=-10 10
measures of relative variability. These measures 50 50-50=0 0
are the coefficient of variation and the standard 60 60-50=10 10
scores. 80 80-50=30 30
• In statistics, dispersion is the extent to which a M = 50 Total = 80
distribution is stretched or squeezed
∑| 𝒙−𝒙|
MD =
1. The Range (R) 𝟖𝟎
𝒏

1) The range is the simplest and the easiest to = 𝟓

compute among the measures of variability = 16
because it depends only on the pair of
extreme values VISTA
2) It is the difference between the highest and the Numbers Sold Each value – mean Absolute Deviation
lowest score in a distribution. 20 20-50=-30 30
3) It is the most unstable since its value easily 49 49-50=-1 1
fluctuates with the change in either of the 50 50-50=0 0
highest or lowest observations. 51 51-50=1 1
Example: If the lowest score in a distribution is 24 80 80-50=30 30
and the highest is 39, what is the range? R = 39- M = 50 Total = 62
24 = 15
∑| 𝒙−𝒙|
MD =
2. The Average or Mean Deviation 𝒏
𝟔𝟐
• The formula for mean deviation is = 𝟓
∑| 𝒙−𝒙|
MD = 𝒏 = 12.4
Where: | 𝒙 − 𝒙|
Is read as “the absolute value of X-X” 3. Quantile Deviation
X = score of value • Percentile and Decile Deviation – lowest and
X = mean highest 10% of the observations are
n = number of classes/cases disregarded, only the spread of the middle 80%
| | = symbol for absolute value of the observations are considered.
• Interquartile Range – the spread of distributions
Why do we ignore the signs of the deviations from the used are the third quartile and the first quartile
mean? corresponding to 75th and 25th percentile
If we didn’t, the positive and the negative respectively
deviations from the deviation from the mean would exactly • Quartile Deviation – also called semi-quartile
offset each other and the mean deviation would always be range is defined as the amount of dispersion
zero. Such a measure (0) would be a useless statistic. present in the middle of 50% of the values.

Example: Formula
The chart below shows the cappuccinos sold at the
Starbucks in two of their branches within a certain city ◼ Percentile and Decile Deviation – (80%)
between 5 to 6pm. PD = P90-P10
STARBUCKS DD = P9-P1
CLARK VISTA ◼ Interquartile Range – (50%)
20 20 IR = Q3 – Q1
40 49 ◼ Quartile Deviation –
𝑸𝟑−𝑸𝟏
50 50 QD = 𝟐
60 51
80 80

Mind over matter.

 STATAPP: STATISTICAL ANALYSIS WITH SOFTWARE APPLICATION
CHAPTER 6: Measures of Variability
MX. LEOPOLDO A. LIANGCO JR – DHVSU COLLEGE OF BUSINESS STUDIES
BS ACCOUNTANCY | 1ST SEMESTER A.Y. 2022-2023

PERCENTILE QUARTILE DEVIATION

◼ Percentile– (80%)
PD = P90-P10 QR =
𝑄3−𝑄1
2
Example:
9,18,20,21,22,24,26,27,30,31,31,31,33,34,35,35
Example:
9,18,20,21,22,24,26,27,30,31,31,31,33,34,35,35
PD = P90 – P10
𝐾(𝑛)
Pk = 100 IR = Q3 – Q1
𝐾(𝑛)
Qk = 4
90(16)
P90 = 100 = 14.4 or 15
P90 = 35 3(16)
Q3 = 4 = 12
10(16)
P100 = 100 = 1.6 or 2 Q3 = 31
P10 = 18 Q1 =
1(16)
=4
4
Q1 = 21
PD = 35 – 18
PD = 17
IR = 31 – 21
IR = 10
DECILE
◼ Decile– (80%) 𝐼𝑅
PD = P9-P1 QR = 2
10
Example: = 2
9,18,20,21,22,24,26,27,30,31,31,31,33,34,35,35 =5
DD = P9 – P1 VARIANCE & STANDARD DEVIATION
𝐾(𝑛)
Dk = 10 • Using the absolute value symbol, the influence of
the negative signs is eliminated in the
D9 =
90(16)
= 14.4 or 15 computation of the mean deviation or average
10 deviation.
P90 = 35
10(16) • Another way to eliminate the influence of negative
P100 = 10 = 1.6 or 2 signs would be to square the deviation from the
P10 = 18 mean. Adding these squared deviations and
dividing the sum by the number of items, yields
PD = 35 – 18 the variance (s2), which is a basic measure of
PD = 17 dispersion.
• Extracting the square root of the variance yields
INTERQUARTILE RANGE the standard deviation (s), which has the same
◼ – (50%) units of measurements as the data or the scores.
IR = Q3-Q1 The standard deviation is the most commonly
Example: used measure of dispersion.
9,18,20,21,22,24,26,27,30,31,31,31,33,34,35,35 • Standard deviation is a statistic that measures the
dispersion of a dataset relative to its mean and is
IR = Q3 – Q1 calculated as the square root of the variance. The
𝐾(𝑛)
Dk = 4 standard deviation is calculated as the square
root of variance by determining each data point's
3(16) deviation relative to the mean.
Q3 = 4 = 12 • Variance is the average squared deviations from
Q3 = 31 the mean, while standard deviation is the square
1(16)
Q1 = 4 = 4 root of this number.
Q1 = 21 • Standard deviation is expressed in the same units
as the original values (e.g., minutes or meters).
IR = 31 – 21 • Variance is expressed in much larger units (e.g.,
IR = 10 meters squared).

Mind over matter.

 STATAPP: STATISTICAL ANALYSIS WITH SOFTWARE APPLICATION
CHAPTER 6: Measures of Variability
MX. LEOPOLDO A. LIANGCO JR – DHVSU COLLEGE OF BUSINESS STUDIES
BS ACCOUNTANCY | 1ST SEMESTER A.Y. 2022-2023

Standard Deviation Formula Class Interval f M fM M2 FM2

40-44 7 42 294 1764 12,348
UNGROUP DATA GROUP DATA 45-49 10 47 470 2209 22090
50-54 14 52 728 2704 37856
√𝚺 𝒙𝟐 √𝚺 𝑭𝒎𝟐 − 𝑿𝟐 55-59 17 57 969 3249 55233
𝑺= 𝑺=
𝑵 𝑵 60-64 19 62 1178 3844 73036
Where: Where: 65-69 26 67 1742 4489 116714
S = Standard deviation S = standard deviation 70-74 20 72 1140 5184 103680
∑x2 = total of the SD from the mean F =frequency
N = no. of cases M = Midpoint 75-79 18 77 1386 5929 106722
N = no. of cases 80-84 13 82 1066 6724 87412
X2 = the mean that is squared 85-89 9 87 783 7569 68121
90-94 7 92 644 8464 59248
Variance Formula n = 160 10,700 742,460

UNGROUP DATA GROUP DATA

𝟐
𝚺𝒙 𝚺 𝑭𝒎𝟐 − 𝑿𝟐 √𝚺 𝑭𝒎𝟐 − 𝑿𝟐
𝑺𝟐 = 𝑺𝟐 = 𝑺=
𝑵 𝑵 𝑵
Where: Where:
S2 = The Variance S2 = The Variance
∑x2 = total of the SD from the mean F =frequency Class Interval f M fM FM2
N = no. of cases M = Midpoint
N = no. of cases
40-44 7 42 294 12,348
X2 = the mean that is squared 45-49 10 47 470 22090
50-54 14 52 728 37856
Find the SD of the following scores: 6,7,8,9, and 10 55-59 17 57 969 55233
60-64 19 62 1178 73036
65-69 26 67 1742 116714
x x x–x (x – x)2 70-74 20 72 1140 103680
6 8 -2 4 75-79 18 77 1386 106722
7 8 -1 1 80-84 13 82 1066 87412
8 8 0 0 85-89 9 87 783 68121
90-94 7 92 644 59248
9 8 1 1 n = 160 10,700 742,460
10 8 2 4
40/5 = 8 0 10 1. FM2 = 742460
(mean) N = 160
= 742460/160
Variance = 10/5 = 4640.375
=2 2. N = 160
FM = 10700
Standard Deviation = √2 = 10700/160
= 1.41 = 66.8752
= 4472.26
Find the SD of the following scores:
10,11,11,12,13,14,16,19, 20,21,22,23 √𝟕𝟒𝟐𝟒𝟔𝟎− 𝟒𝟒𝟕𝟐.𝟐𝟔
3. 𝑺=
x x x–x (x – x)2 𝟏𝟔𝟎
10 16 -6 36 = 4640.375 – 4472.26
11 16 -5 25
11 16 -5 25 S2 = 168.12 (Variance)
12 16 -4 16 𝑆 = √168.12 = 12.97 (Standard Deviation)
13 16 -3 9
14 16 -2 4
16 16 0 0
19 16 3 9
20 16 4 16
21 16 5 25
22 16 6 36
23 16 7 49
192/12 =16 253
(mean)

Mind over matter.