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com/guides/business-
mathematics-and-statistics/measures-of-central-
tendency-and-dispersion/measure-of-dispersion/

Solved Example on Measures of Dispersion


Problem: Below is the table showing the values of the results for two
companies A, and B.

1. Which of the company has a larger wage bill?


2. Calculate the coefficients of variations for both of the companies.
3. Calculate the average daily wage and the variance of the distribution
of wages of all the employees in the firms A and B taken together.
Solution:

For Company A

No. of employees = n1 = 900, and average daily wages = ȳ 1  = Rs. 250

We know, average daily wage = Total wages ⁄ Total number of


employees
or, Total wages = Total employees × average daily wage = 900 × 250 =
Rs. 225000 … (i)

For Company B

No. of employees = n2 = 1000, and average daily wages = ȳ2 = Rs. 220

So, Total wages = Total employees × average daily wage = 1000 × 220
= Rs. 220000 … (ii)

Comparing (i), and (ii), we see that Company A has a larger wage bill.

For Company A

Variance of distribution of wages = σ12 = 100

C.V. of distribution of wages  = 100 x standard deviation of distribution


of wages/ average daily wages

Or, C.V. A = 100 × √100⁄250 = 100 × 10⁄250 = 4 … (i)

For Company B

Variance of distribution of wages = σ22 = 144

C.V. B = 100 × √144⁄220 = 100 × 12⁄220 = 5.45 … (ii)

Comparing (i), and (ii), we see that Company B has greater variability.

For Company A and B, taken together

The average daily wages for both the companies taken together
ȳ  = (n1 ȳ 1 + n2 ȳ 2)⁄( n1 + n2) = (900 × 250 + 1000 × 220) ÷ (900 + 1000) =
   

445000⁄1900 = Rs. 234.21

The combined variance, σ2 = (1/ n1 + n2) ÷ [n1 (σ1 2 + d1 2) + n2 (σ2 2 +
d2 2)]

Here, d1 = ȳ1 − ȳ  = 250 – 234.21 = 15.79, d2 = ȳ2 −  ȳ  = 220 – 234.21 =
– 14.21.

Hence, σ2 = [900 × (100 + 15.792) + 1000 × (144 + – 14.212)] ⁄ (900 +


1000)

or, σ2 = (314391.69 + 345924.10) ⁄ 1900 = 347.53.

Measures of Dispersion
Range, Standard Deviation, Variance, Mean Absolute Deviation
https://mathbits.com/MathBits/TISection/Statistics2/dispersion.htm
 

Problem:  For the data set {10, 12, 40, 35, 14, 24, 13, 21, 42, 30}, find the range, the
standard deviation, the variance, and the mean absolute deviation to the nearest
hundredth.
 

A quick reminder before we begin the solution:


In statistics, the population form is used when the data being analyzed includes the
entire set of possible data. 
The sample form is used when the data is a random sample taken from the entire set of
data. 
Check the "Standard Deviation" and "Variance" sections below for more information on
how the calculator presents population versus sample forms.
 

To find the range:


To find the range:
Enter the data, as is, into L1.  You can enter the
list on the home screen and "store" to L1, or you
can go directly to L1 (2nd STAT, #1 Edit).
 

Sort the list to quickly retrieve the highest and


lowest values for the range. (2nd STAT, #2
SortA).  You can choose ascending or
descending.

Read the high and low values from L1 for


computing the range.
Range = 42 - 10 = 32.

OR:  To find the range:  Do not sort.  Simply


type on the home screen using the min and max
functions found under MATH → NUM #6
min and #7 max.

Range = 32
               
 

   To find standard deviation:


To find standard deviation:  Since this question
deals with the complete set, we will be using
"population" form, not sample form.

Go to one-variable stats for "population"


standard deviation.    STAT → CALC  #1 1-Var
Stats

= mean

= sum of the data


  

= sum of squares of the data

  NOTE! The standard deviations found in = sample standard deviation


the CATALOG, stdDev, and also found by 2nd
= population standard deviation
LIST → MATH #7 stdDev are both Sample
standard deviations. n   = sample size (# of pieces of data)
= smallest data entry

= first quartile
  
  = median (second quartile)

= third quartile

= largest data entry

Population Standard Deviation = 11.43


FYI:  Using the lists, the calculator can simulate a spreadsheet style "by hand"
computation of standard deviation.  Click here to see the spreadsheet-style approach.

   To find variance:
To find variance:   The "population" variance is
the square of the population standard
deviation.

The   symbol is under VARS - #5 Statistics

  
  NOTE!  The variance found in
the CATALOG and also found by 2nd List →
MATH #8 variance are both Sample variances.

   To find mean absolute deviation:  


To find mean absolute deviation:  
To calculate the mean absolute deviation you
will have to enter the formula.

  NOTE!  Be sure that you have run 1-Var    n 


and are found under VARS #5
Stats (under STAT - CALC #1) first, so that Statistics.  Sum and abs are quickly found
in CATALOG.  Sum is also under 2nd LIST -
the calculator will have computed  .  MATH #5 sum.  abs is also under MATH - NUM
Otherwise, you will get an error from this #1abs.
formula.

OR:  To find mean absolute deviation:


A longer, but workable, solution can also be
accomplished using the lists.  As stated above,
run 1-Var Stats so the calculator will compute 
.  Now, go to L2 (STAT #1 EDIT) and
move UP onto L2.  Type, at the bottom of the
window, the portion of the formula that finds
the difference between each data entry and the
mean, using absolute value to make these
distances positive.  Now, find the mean,  ,
of L2 by using 1-Var Stats on L2, and read
the answer of 10.12.

Example Question

https://byjus.com/maths/dispersion/

Question: Find the Variance and Standard Deviation of the Following Numbers: 1, 3, 5, 5, 6, 7,
9, 10.
Solution: The mean = (1+ 3+ 5+ 5+ 6+ 7+ 9+ 10)/8 = 46/ 8 = 5.75
Step 1: Subtract the mean value from individual value
(1 – 5.75), (3 – 5.75), (5 – 5.75), (5 – 5.75), (6 – 5.75), (7 – 5.75), (9 – 5.75), (10 – 5.75)
= -4.75, -2.75, -0.75, -0.75, 0.25, 1.25, 3.25, 4.25
Step 2: Squaring the above values we get, 22.563, 7.563, 0.563, 0.563, 0.063, 1.563, 10.563,
18.063
Step 3: 22.563 + 7.563 + 0.563 + 0.563 + 0.063 + 1.563 + 10.563 + 18.063
= 61.504
Step 4: n = 8, therefore variance (σ2) = 61.504/ 8 = 7.69
Now, Standard deviation (σ) = 2.77

Practice Problems: Measures of Variability


http://faculty.webster.edu/woolflm/variability.html
A high school teacher at a small private school assigns trigonometry practice
problems to be worked via the net. Students must use a password to access the
problems and the time of log-in and log-off are automatically recorded for the teacher.
At the end of the week, the teacher examines the amount of time each student spent
working the assigned problems. The data is provided below in minutes.
15
28
25
48
22
43
49
34
22
33
27
25
22
20
39

 Find the Range, Standard Deviation, and Variance for the above data.
 What does this information tell you about the variability of student's length of
time on the computer solving trigonometry problems? Is it homogeneous or
heterogeneous?

Practice Problems: Measures of Variability - Answer


A high school teacher at a small private school assigns trigonometry practice
problems to be worked via the net. Students must use a password to access the
problems and the time of log-in and log-off are automatically recorded for the
teacher. At the end of the week, the teacher examines the amount of time each
student spent working the assigned problems. The data is provided below in
minutes.
X X2

49 2401

48 2304

43 1849
39 1521

34 1156

33 1089

28 784

27 729

25 625

25 625

22 484

22 484

22 484

20 400

15 225

452 15160

Standard Deviation

S = 15 (15160) - 4522

15 (15-1)

S = 10.48718
Variance
The variance is 109.98095. The standard deviation is 10.48718. The variance is the
square of the standard deviation. 10.48718 squared is equal to 109.98095.

S2 = 109.98095

Range
The range is 34. The high score is 49; the low score is 15. 49 - 15 = 34.

Range = 34

What does this information tell you about the variability of


students' length of time on the computer solving
trigonometry problems?
It depends on how you look at the question. If you look at the mean of approximately
30 minutes. Then having a standard deviation of approximately 10.5 minutes seems
rather large. But if you put it in the broader context, a standard deviation of
approximately 10.5 minutes of study time is not all the big.

Practice Problems: Measures of Variability


http://faculty.webster.edu/woolflm/variability.html

Bailey has been playing golf on the weekends for the past three years. Recently, she
started keeping track of her recorded scores. Her scores for June and July at her
favorite 9-hole (par 36) golf course are provided below.

45
49
42
56
41
36
34
38
41
40
42
41
39
38
40
39
36
41

 Find the Range, Standard Deviation, and Variance for the above data.
 What does this information tell you about the variability of Bailey's golf game?

Bailey has been playing golf on the weekends for the past three years. Recently, she
started keeping track of her recorded scores. Her scores for June and July at her
favorite 9-hole (par 36) golf course are provided below.

45
49
42
56
41
36
34
38
41
40
42
41
39
38
40
39
36
41

 Find the Range, Standard Deviation, and Variance for the above data.
 What does this information tell you about the variability of Bailey's golf game?
 Practice Problems: Measures of Variability - Answer
 Bailey has been playing golf on the weekends for the past three years.
Recently, she started keeping track of her recorded scores. Her scores for June
and July at her favorite 9-hole (par 36) golf course are provided below.
X X2
56 3136
49 2401
45 2025
42 1764
42 1764
41 1681
41 1681
41 1681
41 1681
40 1600
40 1600
39 1521
39 1521
38 1444
38 1444
36 1296
36 1296
34 1156
738 30692


 Standard Deviation


S = 18 (30692) - 7382
18 (18-1)

 S = 5.0526638

 Variance
 The variance is 25.529412. The standard deviation is 5.0526638. The variance
is the square of the standard deviation. 5.0526638 squared is equal to
25.529412.
 S2 = 25.529412

 Range
 The range is 22. The high score is 56; the low score is 34. 56 - 34 = 22.
 Range = 22

 What does this information tell you about the


variability in Bailey's golf game?
 Bailey's golf game appears to be fairly consistent (at least by my standards in
relation to my golf game). She is somewhat consistently within 5 strokes of her
mean performance.

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