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BBA TU Measures of Dispersion Formula, BBA
BBA TU Measures of Dispersion Formula, BBA
Measures of dispersion are statistical tools i.e. descriptive statistical measures which are used to
measure the variation or spread or scatterness or deviation of data from the central value. So, it gives
an idea of homogeneity or heterogeneity of the distribution.
Measures of Dispersion
Range
It is defined as the difference between largest (maximum) value and smallest (minimum) value for the
given observations of the distribution.
Range (R) = L – S.
Where, L = Largest item or observation
S = Smallest item or observation
In case of grouped frequency distribution (i.e. continuous frequency distribution) range is defined as
the upper limit of the highest class and the lower limit of the smallest class.
Coefficient of range =
It is a relative measure of dispersion.
Where
First quartile (Q1) = Value of item
Third quartile (Q3) = Value of item
1
n = Number of observatins.
For discrete series
Q 3 −Q 1
2
Quartile deviation (Q.D.) =
Where
( )
th
First quartile (Q1) = Value of N +1 item
4
( )
th
Third quartile (Q3) = Value of 3(N +1) item
4
N=∑ f = Total frequency
and relative measure of Q.D is
Coefficient of quartile deviation =
For continuous series
Q 3 −Q 1
2
Quartile deviation (Q.D.) =
Where
First quartile (Q1) = L + × h
Third quartile (Q3) = Q3 = × h
Coefficient of quartile deviation =
Mean Deviation or Average deviation
Mean deviation is defined as the arithmetic mean of the absolute (modulas) deviations of the items or
observations taken from their central values. The central values generally are taken as mean, median
or mode. If the average deviation is taken from mean, median, or mode, then they are said to be mean
deviation from mean, mean deviation from median or mean deviation from mode respectively.
Individual Series
∑ |X− X|
M.D. from Mean = n
∑ |X− Md|
M.D. from Median = n
∑ |X− Mo|
n
M.D. from Mode =
Discrete Series
2
∑ f |X −X|
M.D. from Mean = N
∑ f |X −Md|
M.D. from Median = N
∑ f |X −M o|
M.D. from Mode = N
∑ f |X −X|
M.D. from Mean = N
∑ f |X −Md|
M.D. from Median = N
∑ f |X −M o|
M.D. from Mode = N
M.D. is an absolute measure of dispersion. But for comparing two or more distributions, we need
relative measure of dispersion. The relative measure of dispersion based on M.D. is known as
coefficient of M.D. and given by
Standard Deviation
Standard deviation is defined as “the positive square root of the arithmetic mean of the square of the
deviations of the given set of observations from their arithmetic mean.” It is usually denoted by Greek
alphabet (sigma).
Standard deviation is said to be the best measure of dispersion (or ideal measure of dispersion) or
simply “Dispersion” as it satisfies almost all the requisites (or characteristics) of an ideal or a good
measure of dispersion.
3
S.D.
(σ )=
√ ∑ ( X −X )2
n - Actual mean method
√ ( )
2
∑ X2 − ∑ X
S.D. (σ ) = n n - direct method
√ ( )
2
∑ d2 − ∑ d
S.D. (σ ) = n n - Short cut method
Where,
d=X–A
A = Assumed mean
S.D.
(σ )=
√ ∑ f ( X− X )2
N - Actual mean method
√ ( )
2
∑ fX 2 − ∑ fX
S.D. (σ ) = N N - Direct method
√ ( )
2
∑ fd 2 − ∑ fd
S.D. (σ ) = N N - Short cut method
Where,
d=X–A
A = Assumed mean
S.D.
(σ )=
√ ∑ f ( X− X )2
N - Actual mean method
√ ( )
2
∑ fX 2 − ∑ fX
S.D. (σ ) = N N - direct method
4
√ ( )
2
∑ fd 2 − ∑ fd
S.D. (σ ) = N N - Short cut method
√
2
( )
2
∑ fd' −
∑ fd' ×h
S.D. (σ ) = N N - Step-deviation method
Note:
(i) Formula for calculating s.d. ( σ ) is same in case of continuous series and discrete series but X is
middle value of the class intervals in case of continuous series but X is the given value of
variable for discrete series.
Variance
2
The square of the standard deviation is known as variance. It is denoted by σ and given by
2
σ =V ( X ) Where V(X) = variance of variable x
∴σ= √V ( X )
Combined standard deviation
√
n1 σ 2 +n 2 σ 2 +n1 d 2 +n 2 d 2
1 2 1 2
σ 12=
n1 + n2 Where,
d 1 =X 1 −X 12
d 2 =X 2 −X 12
n1 X 1 +n2 X 2
X 12=
n 1 +n2
√
n 1 σ 2 +n2 σ 2 + n3 σ 2 + n1 d 2 + n2 d 2 +n3 d 2
1 2 3 1 2 3
σ 123 =
n1 + n2 +n3
Where,
d 1 =X 1 −X 123
d 2 =X 2 −X 123
5
d 3 =X 3 −X 123
n1 X 1 + n 2 X 2 + n3 X 3
X 123 =
n1 +n 2 +n3
C.V. = × 100%