Measures of Dispersion

Mainly two types of measures of dispersion .

1) Absolute measure ( পরম পিরমাপ)
2) Relative measure ( আেপি ক পিরমাপ)

Absolute measure ( পরম পিরমাপ) Relative measure ( আেপি ক পিরমাপ)

1) Range (পিরসর) 1) Co-efficient of Range ( পিরসরা )

2) Quartile Deviation ( চ থক বধান) 2) Co-efficient of Quartile Deviation

(চ থক বধানাংক)

3) Mean Deviation ( গড় বধান ) 3) Co-efficient of Mean Deviation (গড়

বধানাংক)
4) Standard Deviation ( পিরিমত বধান) 4) Co-efficient of Variation (িবেভধাংক)

Absolute measure ( পরম পিরমাপ):

1) Range = | H-L | (Highest value – Lowest value) ungroup data

( ) ( )
2) Quartile Deviation Q.D =
( ) )
=

( )
=
 x f
| − |
5 7 2
6 9 1
7 10 0
8 12 1
9 13 2

=7

∑| |
3) Mean Deviation MD( X )=

∑ | |
MD( X ) =
 4) Standard Deviation = σ

∑( ̅ )²
σ = ( for ungrouped Data )

∑ ( ̅ )²
1 ) σ = ( for grouped Data)

∑ ² ∑
2) σ = −( )² ( for grouped Data)

∑ ( ̅ )²
Variance σ =

∑ ( ̅ )²
σ = ( for grouped Data)

∑ ( ̅ )
σx =
 ∑ ∑ ∑ ̅ )
=

∑ ∑ ∑ ̅
= − +

∑ ∑
= −2 + where , X = and ∑f=N

∑
= −2 +

∑
= −

∑ ² ∑
σ = −( )²
 Relative measure ( আেপি ক পিরমাপ) :

1) Co-efficient of Range = × 100

= × 100

2) Co-efficient of Quartile Deviation (চ থক বধানাংক) = ×100

(X )
3) Co-efficient of Mean Deviation (গড় বধানাংক) = × 100
(X )

4) Co-efficient of Variation (িবেভধাংক)= C.V

C.V = × 100
X
Now we can do some Practices,
Problem :

Class Interval frequency

10-20 7
20-30 10
30-40 15
40-50 13
50-60 9
60-70 6
70-80 12
80-90 8

Find Standard Deviation and C.V (Coefficient of Variation )

Solution :

∑ ( ̅ )²
We know that Standard Deviation σ = and
∑ ² ∑
σ = −( )²

∑ ( ̅ )²
σ =

X = 50
Now ,

C.I x f ( − ̅) ( − ̅ )² ( − ̅ )²
10-20 15 7 -35 1225 8575
20-30 25 10 -25 625 6250
30-40 35 15 -15 225 3375
40-50 45 13 -5 25 325
50-60 55 9 5 25 225
60-70 65 6 15 225 1350
70-80 75 12 25 625 7500
80-90 85 8 35 1225 9800
f= N= 80 ∑ ( − ̅ )²=37400
 ∑ ( ̅ )²
σ =

= √467.5
= 21.62

σ
C.V = × 100
X

.
Now , CV = × 100
= 0.432 × 100
= 43.2
Again , Another problem

x f
4 5
5 7
7 3
8 4
3 7
6 4
9 10
N = 40

Solution : We know that Standard Deviation ,

∑ ² ∑
σ = −( )²

X =6

X f fx

4 5 20 80
5 7 35 175
7 3 21 147
8 4 32 256
3 7 21 63
6 4 24 144
9 10 90 810
N = 40 ∑ fx = 243 ∑ =1675
fx × x =f

∑ ² ∑
Now σ = −( )²

σ = −( )² = 41.875 − (6.075)²

= √41.875 − 36.905 = √4.97 =2.22

Now , C.V = × 100

X

.
= × 100

= 37

Solved
 Correlation analysis

Definition : Correlation is a statistical term describing the

degree to which two variables move in coordination with one
another. If the two variables moves in the same direction, then
those variables are said to have a positive correlation. If they move
in opposite directions, then they have a negative correlation.

Another definition
An analysis of the covariation of two or more variables is usually
called correlation. ( ই বা তেতািধক চলেকর সহ-স েকর িবে ষণ ক সংে ষ বেল।

Correlation analysis deals with the association between two or

more variables . ( সংে ষ িবে ষণ ই বা তেতািধক চলেকর মে িব মান স ক িনেয় আলচনা
কের ।
Karl Pearson’s Coefficient of Correlation :

∑( ̅ )( )
=
∑( ̅) ∑( )
 Where, ̅ and are the respected means of x and y variables
the above formula can be written as :

r= , where,
∑
u= − ̅ and
v= −

Range of r : −1 ≠ r ≠ 1

Where , r= −1 , strongly negative correlation

r= 1 , strongly positive correlation and
r= 0 , no correlation

= true
≠ false
Problem: find the coefficient of correlation between the sales
and expenses from the data given below :

Firm 1 2 3 4 5 6 7 8 9 10
Sales (Rs.lakhs) 50 50 55 60 65 65 65 60 60 50
Expenses 11 13 14 16 16 15 15 14 13 13
(Rs.lakhs)
Solution :
At first we know that,

r= , where,
∑
u= − ̅ and
v= −
let ,sales = x and expenses =y
̅ = 58 = 14

Firm Sales ( − ̅) Expenses( − ) uv

x = y =
1 50 -8 64 11 -3 9 24
2 50 -8 64 13 -1 1 8
3 55 -3 9 14 0 0 0
4 60 2 4 16 2 4 4
5 65 7 49 16 2 4 14
6 65 7 49 15 1 1 7
7 65 7 49 15 1 1 7
8 60 2 4 14 0 0 0
9 60 2 4 13 -1 1 -2
10 50 -8 64 13 -1 1 8
u= 0 2 = 360 v= 0 2 = 22 uv=70

r=
∑

=
√ ×

=
.
 = 0.78

Regression analysis

Definition : Regression analysis is a set of statistical methods

used to estimate the relationship between a dependent variable
and one or more independent variables.

Another definition :
In statistical modeling ,Regression analysis is a set of statistical
processes for estimating the relationships between a dependent
variable and one or more independent variables.
Regression model:
Let x and y are the two variables then ,
The regression equation of Y on X is expressed as follows:
Y=a+bX
Where, Y is the dependent variable to be estimated and X is the
independent variable.
Another way ,
The regression equation of X on Y is expressed as follows:
X =a+bY
Where X is the dependent variable to be estimated and Y is the
independent variable.
Now , the linear Regression model Y on X is said to as follows :

Y− = ( − )
 Where X is independent and
Y is dependent
Here ,

= where , u= ∑ ̅ and v= y −

Again , the linear Regression model X on Y is said to as follows :

− = ( Y− )
Where Y is independent and
X is dependent
Here ,

= where , u= ∑ ̅ and v= y −

≠ true

= false
 Now we solve a problem,
In the following table are recorded data showing the test scores
made by salesmen on an intelligence test and their weekly sales:
Salesmen 1 2 3 4 5 6 7 8 9 10
Test 40 70 50 60 80 50 90 40 60 60
score
Sales 2.5 6.0 4.0 5.0 4.0 2.5 5.5 3.0 4.5 3.0
(‘000 Rs.)

Calculate the regression equation of sales on test scores and

estimate the probable weekly sales volume if a sales makes a score
100.
Solution :
Let , Sales = y and
Test scores = x
we have to fit a regression equation of Y on X i.e ,
Y− = ( − ) and here

where , u= ∑ ̅ and v= y −
Table
Salesmen Test u= ∑ ̅ Sales v=y− uv
score y
x
1 40 -20 400 2.5 -1.5 2.25 30
2 70 10 100 6.0 2 4 20
3 50 -10 100 4.0 0 0 0
4 60 0 0 5.0 1 1 0
5 80 20 400 4.0 0 0 0
6 50 -10 100 2.5 -1.5 2.25 15
7 90 30 900 5.5 1.5 2.25 45
8 40 -20 400 3.0 -1 1 20
9 60 0 0 4.5 .5 .25 0
10 60 0 0 3.0 -1 1 0
N= = =2400 =40 = = =
= 600 14 130
̅= =60

= =4

= = = 0.054

The regression equation of sales on test scores is given as :

Y− = ( − )
Y – 4 = 0.054(x −60)
Y – 4 = 0.054x −3.24
Y = 0.054x −3.24 + 4
Y = 0.76 + 0.054 X

When X is 100 , Y would be

Y= 0.76 +0.054(100) = 6.16
Thus the most probable weekly sales volume if salesman makes a
score of 100 is 6.16 thousan rupees.

Solv
 Index Number

Definition :
Index number in statistics is the measurement of change in a variable
or variables across a determined period. It will show general relative
change and not a directly measurable figure. An index number is
expressed in percentage form.
Importance of Index Number:
Index numbers occupy an important place due to its efficacy in
measuring the extent of economic changes across a stipulated period. It
helps to study such changes' effects due to factors that cannot be
directly measured.
Characteristics of Index Numbers
The main features of index numbers are –
 It is a special category of average for measuring relative changes
in such instances where absolute measurement cannot be
undertaken
 Index number only shows the tentative changes in factors that may
not be directly measured. It gives a general idea of the relative
changes
 The method of index number measure alters from one variable to
another related variable
 It helps in the comparison of the levels of a phenomenon concerning
a specific date and to that of a previous date
 It is representative of a special case of averages especially for a
weighted average
 Index numbers have universal utility. The index that is used to
ascertain the changes in price can also be used for industrial and
agricultural production.
Types of Index Numbers
Its major types are –
1) Price Index ( চক সং া )
A price index number is used to measure how price alters across a period.
It will indicate the relative value and not the absolute value. The
Consumer Price Index (CPI) and Wholesale Price Index (WPI) are major
examples of a price index. ( ইহা সাধারণতঃ কান িভি বৎসেরর কান চলিত বৎসেরর এক প পে র
পিরবতন লনা কের ।
Price index are two types :
1) Whole sale price index ( পাইকারী চক কান দেশর সাধারনতঃ মা ার পিরবতেনর িচ
কাশ কের । কান দেশর ধান ধান পে র উপর সাধারনতঃএ ধরেনর চক সং া িননয় করা হয়। দেশর
উে খেযা বাজার থেক বাজার দরসহ েয়াজনীয় উপা সং হ করা হয় । দেশর র এবং ার য়
মতা িনণয় করাই হাল এ ধরেনর চক সং া ধান উে ।
2) Retail price index (এই ধরেনর চক সং া ান কাল ভেদ িবিভ পে র চরা পিরবতেনর হার
লনা কের । জীবনযা ার য় চক সং া চরা চেকর একটা িবেশষ প ।

2.Quantity Index
A quantity index number is used to measure changes in the volume or
quantity of goods that are produced, consumed and sold within a
stipulated period. It shows the relative change across a period for
particular quantities of goods. Index of Industrial Production (IIP) is an
example of Quantity Index. ( এ ধরেনর চক সং া িষে ে বা িশ ে ে উৎপািদত পে র পিরমান
,আমদানী র ানী ত পে র পিরমান বা ভাগ ত পে র পিরমােনর পিরবতেনর হার পিরমাপ কের । অথাৎ ইহা কান
দেশর িবিভ স ের উৎপািদত মাট পে র পিরবতেনর হার পিরমাপ কের ।)

3.Value Index
A value index number is formed from the ratio of the aggregate value for
a particular period with that of the aggregate value that is found in the
base period. The value index is utilised in for inventories, sales and
foreign trade, among others. ( কান পে র ে র সােথ পে র পিরমান ন করেল পে র মান
পাওয়া যায় । এই চক সং া কান িভি বৎসেরর মােনর সােথ কান চলিত বৎসেরর মােনর পিরবতেনর লনা
পিরমাপ কের ।)
Price ratio

P= × 100 , where = current year price

= base year price

P= া পাত ( সাধারণ চক সং া বা া পাত যা চলিত বৎসেরর সােথ িভি বৎসেরর া পােতর

শতকরা হার।
=চলিত বৎসর

০= িভি বৎসর

Base year ( িভি বৎসর)= য বৎসেরর সােথ লনা কের চক সং া িনণয় করা হয় তােক িভি বৎসর
বেল । িভি বৎসরেক ০ দারা কাশ করা হয়।

Current year (চলিত বৎসর)= িভি বৎসেরর সােথ লনা কের য বৎসেরর চক সং া িনণয় করা
হয় তােক চলিত বৎসর বলা হয় । চলিত বৎসর ক ১ দারা কাশ করা হয় ।

Family budget method :

∑
The cost of living index =

, where price ratio , P= × 100

w= weight
Problem :
An enquiry into the budgets of middle class families in a village
near hydarabad gave the following information.

Expenses Food Rent Clothing Education misc

on
30% 25% 15% 10% 20%
Price 1800 1000 700 400 700
(Rs.)2019
Price 2000 1200 900 500 1000
(Rs.)2020

Conostruct cost of living index and comment on the change in the

cost of living in 2020 as compared to 2019.

Solution :
∑
We know that cost of living index =

Now
Expenses 2019 2020 w pw
on P= ×100
Food 1800 2000 111.11 30 3333.3
Rent 1000 1200 120 25 3000
Clothing 700 900 128.57 15 1928.55
Education 400 500 125 10 1250
Misc 700 1000 142.85 20 2857
= 100 =12368.85
 ∑
Now , cost of living index =

.
=

=123.69% ( for 2020)