LESSON – MEASURES OF DISPERSION

OVERVIEW

The term “variability” refers to the extent to which the scores on a quantitative variable in a distribution are spread out.
The most common measure of variability is the standard deviation. The calculations of the measures of variability
depend on whether the data are taken from the sample or from the population.

MODULE OBJECTIVE

After successful completion of this module, the students should be able to:
• Describe the range, the variance, and the standard deviation.
• Calculate the variance and standard deviation for the frequency distribution of sample data.
• Apply the different measures of spread or dispersion on a given set of data.

COURSE MATERIALS

One of the important characteristics of any set of data is that not all values are alike, but the extent to which they are
unalike or vary among themselves is important in statistics. The measure of dispersion measures the extent to which
data are dispersed or spread out. It serves as a supplement to central tendency, and at the same time, gives meaning
to the measures of central tendency. The measures of variation indicate the nature or degree of clustering. The more
concentrated the values about the mean or average, the more meaningful is the average as a measure of location.

A. VARIANCE

Definition: Formula:

The variance is the mean of the squared deviations of

(x - x)
n
2
the observations from the mean. It is a measure of i
variablility that considers the position of each s2 = i =1
where s 2 = variance; x = mean
observation relative to the mean of the set of scores. n-1

B. STANDARD DEVIATION

The standard deviation is defined as the positive square root of the variance.

a. The Standard Deviation for Ungrouped Data

First Formula: Second Formula:

 (x - x )
n 2
2 n  n 

s = i =1
i

n xi -  xi 
i =1
2
 
 i=1 

n-1 s =
n (n - 1)

1. Compute the standard deviation of scores 7, 10, 14, 19, and 25 using the first and second formula.

x x- x (x - x )2 First Formula:
7 -8 64 n

 (x - x )
n
10 -5 25

2
xi i
14 -1 1 i =1 75 206
x= = = 15 i =1
19 4 16 s= = = 7.18
n 5 n-1 5 −1
25 10 100
∑ x = 75 ∑ (x- x )2 = 206

1
 x x2 Second Formula:
7 49 2
10 100
n  n 
14 196 
n
i =1

xi2 -  xi 
 
 i=1  = 5(1331) - (75) = 7.18
2
19 361 s=
25 625 n (n - 1) 5 (5 - 1)
∑ x = 75 ∑ x2 = 1331

c. Standard Deviation for Grouped Data

First Formula: Second Formula:

 ( )
n 2
2  n
n 

s= i =1
f • xi - x
i =1

n f • xi -  f • xi 

 i=1


2

n-1 s=
n (n - 1)

2. Compute the standard deviation using the different formulas using the first and second formula.

Salary of
f x fx x- x (x - x )2 f (x - x )2
Employees
101 – 200 4 150.5 602 -145 21,025 84,100
201 – 300 9 250.5 2,254.50 -45 2,025 18,225
301 – 400 3 350.5 1,051.50 55 3,025 9,075
401 – 500 2 450.5 901 155 24,025 48,050
501 – 600 2 550.5 1,101 255 65,025 130,050
n = 20 ∑ f x = 5,910 ∑f (x - x )2 = 289,500
First Formula:
n

 fx
i =1
i
5,910  f • (x - x )
n

i
2

x = = = 295.5 i =1 289,500
n 20 s= = = 123.44
n-1 20 − 1

Salary of
f x fx fx2
Employees
101 – 200 4 150.5 602 90,601
201 – 300 9 250.5 2,254.50 564,752.25
301 – 400 3 350.5 1,051.50 368,550.75
401 – 500 2 450.5 901 405,900.5
501 - 600 2 550.5 1,101 606,100.5
n = 20 ∑ fx = 5,910 ∑fx2 = 2,035,905

Second Formula:
2
n  n 

i =1

n f • xi -  f • xi 

 i=1

2

 = 20(2,035,905) - (5,910) = 123.44
2
s=
n (n - 1) 20 (20 - 1)