Measures of Dispersion

Measures of Dispersion
In statistics, to describe the data set accurately,
statisticians must know more than the measures of central
tendency. The measures of central tendency only provide
information about the similarity or typicality of scores. But to
fully describe the distribution, we need to gain information
about how scores differ or vary. The description of the
distribution can only be complete if some information of its
variability is known. To substantiate the information provided
by the measures of centrality, some degree of dispersion must
also be brought into the light.
Example
Comparison of Outdoor Paint
A testing lab wishes to test two experimental brands of
outdoor paint to see how long each will last before fading. The
testing lab makes 6 gallons of each paint to test. Since
different chemical agents are added to each group and only
six cans are involved, these two groups constitute two small
populations. The results (in months) are shown. Find the
mean of each group.
Example
Brand A Brand B
10 35
60 45
50 30
30 35
40 40
20 25
Solution
The mean for brand A is
σ𝑥 210
𝜇= = = 35 months
𝑛 6
The mean for brand B is
σ𝑥 210
𝜇= = = 35 months
𝑛 6
 Since the means are equal in the Example, you might conclude
that both brands of paint last equally well. However, when the data
sets are examined graphically, a somewhat different conclusion might
be drawn.
 As the figure showed, even though the means are the same for
both brands, the spread, or variation, is quite different. The figure
shows that brand B performs more consistently; it is less variable. For
the spread or variability of a data set, three measures are commonly
used: range, variance, and standard deviation.
Range
Range
The range is the simplest of the three measures of dispersion.

One extremely high or one extremely low data value can

affect the range. For grouped data, the range is simply the
difference of the highest upper boundary and the lowest
lower boundary.
Range
The capability of the range is to give information about
the scattering of the scores by merely using two extreme
points. But the capability of range to report score deviation
poses a severe limitation. If you add new scores within the
distribution, the range can never report any changes in the
deviation. The range is not stable enough to indicate
variability. But nevertheless it is still a method in finding the
variability of any given distribution.
Example
Comparison of Outdoor Paint
Find the ranges for the paints in the previous example.
Brand A Brand B
10 35
60 45
50 30
30 35
40 40
20 25
Solution
For brand A, the range is
R = 60 – 10 = 50 months
For brand B, the range is
R = 45 – 25 = 20 months
Make sure the range is given as a single number.
The range for brand A shows that 50 months separate the largest
data value from the smallest data value. For brand B, 20 months
separate the largest data value from the smallest data value, which is
less than one-half of brand A’s range.
Example
The salaries for the staff of the XYZ Manufacturing Co. are shown here.
Find the range.
Staff Salary
Owner $100,000
Manager 40,000
Sales representative 30,000
Workers 25,000
15,000
18,000
Solution
The range is
R = $100,000 – $15,000 = $85,000.
Variance and Standard Deviation
Population Variance and Standard Deviation
Example
Comparison of Outdoor Paint
Find the variance and standard for the paints in the paint example.
Brand A Brand B
10 35
60 45
50 30
30 35
40 40
20 25
Solution
For Brand A.
Step 1 Find the mean for the data.
σ𝑥 10+ 60+ 50+ 30+ 40+ 20 210
𝜇= = = = 35
𝑛 6 6
Step 2 Subtract the mean from each data value, and place the result in
the second column of the table.
Step 3 Square each result and place the squares in the third column of
the table.
Step 4 Find the sum of the squares in the third column.
Solution

𝒙 𝒙−𝝁 𝟐
𝒙−𝝁
10 –25 625
60 25 625
50 15 225
30 –5 25
40 5 25
20 –15 225

෍ 𝑥 = 210 ෍ 𝑥−𝜇 2 = 1750

Solution
Step 5 Divide the sum by N to get the variance.
σ 𝑥−𝜇 2
2
𝜎 = 𝑁 = 1750
6 = 291.7
Step 6 Take the square root of the variance to get the standard
deviation.
σ 𝑥−𝜇 2
𝜎= = 291.7 = 17.1
𝑁
Solution
For Brand B.
σ𝑥 10+ 60+ 50+ 30+ 40+ 20 210
𝜇= = = = 35
𝑛 6 6
𝒙 𝒙−𝝁 𝟐
𝒙−𝝁
35 0 0
45 10 100
30 –5 25
35 0 0
40 5 25
25 –10 100
2
෍ 𝑥 = 210 ෍ 𝑥−𝜇 = 250
Solution
σ 𝑥−𝜇 2
𝜎2 = 𝑁
= 250
6
= 41.7
σ 𝑥−𝜇 2
𝜎= = 41.7 = 6.5
𝑁
Hence, the variance and standard deviation for Brand A is 291.7 and
17.1, respectively. Meanwhile, the variance and standard deviation for
Brand B is 41.7 and 6.5, respectively.
Since the standard deviation of brand A is 17.1 and the standard
deviation of brand B is 6.5, the data are more variable for brand A. In
summary, when the means are equal, the larger the variance or
standard deviation is, the more variable the data are.
Sample Variance and Standard Deviation
Sample Variance and Standard Deviation
Sample Variance and Standard Deviation
Example
European Auto Sales
Find the sample variance and standard deviation for the amount of
European auto sales for a sample of 6 years shown. The data are in
millions of dollars.
11.2, 11.9, 12.0, 12.8, 13.4, 14.3
Source: USA TODAY.
Solution
𝒙 ഥ
𝒙−𝒙 ഥ
𝒙−𝒙 𝟐

11.2 –1.4 1.96

11.9 –0.7 0.49
12.0 –0.6 0.36
12.8 0.2 0.04
13.4 0.8 0.64
14.3 1.7 2.89

෍ 𝑥 = 75.6 ෍ 𝑥 − 𝑥ҧ 2 = 6.38

σ𝑥 11.2+ 11.9+ 12.0+ 12.8 +13.4 + 14.3 75.6

𝑥ҧ = = = = 12.6
𝑛 6 6
Solution

ഥ 2
𝑠2 = σ 𝑥−𝑥
𝑛−1
= 6.38
6−1
= 6.38
5
= 1.276
The variance is rounded to 1.28.

σ 𝑥−𝑥ҧ 2
s= = 1.276 = 1.13
𝑛−1
Hence, the sample standard deviation is 1.13.
Solution (Shortcut or Computational Formula)
𝒙 𝒙𝟐
11.2 125.44
11.9 141.61
12.0 144.00
12.8 163.84
13.4 179.56
14.3 204.49

෍ 𝑥 = 75.6 ෍ 𝑥 2 = 958.94
Solution
𝑛 σ 𝑥2 − σ 𝑥 2
𝑠2 = 𝑛 𝑛−1
𝑠 = 1.276
2 6 958.94 − 75.6 2
𝑠 = 6 6−1
𝑠 = 1.13
𝑠2 = 5753.64−5715.36
6 5
Hence, the sample standard
𝑠2 = 38.28
30
deviation is 1.13.
𝑠 2 = 1.276
The variance is rounded to 1.28.
Sample Variance and Standard Deviation
Example
Miles Run per Week. Find the variance and the standard
deviation for the frequency distribution of the data. The data represent
the number of miles that 20 runners ran during one week.
Solution
Solution
Solution
Uses of the Variance and
Standard Deviation
Uses of the Variance and Standard Deviation
1. As previously stated, variances and standard deviations can be used to
determine the spread of the data. If the variance or standard deviation is
large, the data are more dispersed. This information is useful in
comparing two (or more) data sets to determine which is more (most)
variable.
2. The measures of variance and standard deviation are used to determine
the consistency of a variable.
3. The variance and standard deviation are used to determine the number
of data values that fall within a specified interval in a distribution.
4. Finally, the variance and standard deviation are used quite often in
inferential statistics.
Average Deviation
Average Deviation (Ungrouped Data)
σ 𝑥 − 𝑥ҧ
𝐴𝐷 =
𝑛
where
𝑥 – individual value
𝑥ҧ – sample mean
n – sample size
Example
European Auto Sales
Find the sample variance and standard deviation for the amount of
European auto sales for a sample of 6 years shown. The data are in
millions of dollars.
11.2, 11.9, 12.0, 12.8, 13.4, 14.3
Source: USA TODAY.
Solution
𝒙 ഥ
𝒙−𝒙 ഥ
𝒙−𝒙
11.2 –1.4 1.4
11.9 –0.7 0.7
12.0 –0.6 0.6
12.8 0.2 0.2
13.4 0.8 0.8
14.3 1.7 1.7

෍ 𝑥 = 75.6 ෍ 𝑥 − 𝑥ҧ = 5.4

σ𝑥 11.2+ 11.9+ 12.0+ 12.8 +13.4 + 14.3 75.6

𝑥ҧ = = = = 12.6
𝑛 6 6
Solution

σ 𝑥 − 𝑥ҧ 5.4
𝐴𝐷 = = = 0.9
𝑛 6
Hence, the average deviation is 0.9.
Average Deviation (Grouped Data)
σ 𝑓 𝑥 − 𝑥ҧ
𝐴𝐷 =
𝑛
where
𝑥 – midpoint of each class
𝑓 – frequency of each class
𝑥ҧ – sample mean
n – sample size
Example
Compute the average deviation of the height of the students.
Class Interval f
175 – 179 2
170 – 174 5
165 – 169 8
160 – 164 11
155 – 159 21
150 – 154 14
145 – 149 17
140 – 144 2
Solution
Class Interval f 𝒙 𝒇𝒙 ഥ
𝒙−𝒙 ഥ
𝒙−𝒙 ഥ
𝒇 𝒙−𝒙 σ 𝑓𝑥
𝑥ҧ =
175 – 179 2 177 354 20.25 20.25 40.5 𝑛
12540
170 – 174 5 172 860 15.25 15.25 76.25 =
80
165 – 169 8 167 1336 10.25 10.25 82 = 156.75
160 – 164 11 162 1782 5.25 5.25 57.75
155 – 159 21 157 3297 0.25 0.25 5.25
150 – 154 14 152 2128 – 4.75 4.75 66.5
145 – 149 17 147 2499 – 9.75 9.75 165.75
140 – 144 2 142 284 – 14.75 14.75 29.5
𝑛 = 80
෍ 𝑓𝑥 = 12540 ෍ 𝑓 𝑥 − 𝑥ҧ = 523.5
Solution

σ 𝑓 𝑥 − 𝑥ҧ 523.5
𝐴𝐷 = = = 6.5438
𝑛 80
Hence, the average deviation is 6.54.