Measures of Dispersion

Joseph S. Tullao, MSc

Science and Mathematics Department

College of Arts and Sciences
Urdaneta City University
josephtullao@ucu.edu.ph

Lecture 3

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Outline of Presentation

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Outline of Presentation

Range

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Outline of Presentation

Range

Mean Absolute Deviation

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Outline of Presentation

Range

Mean Absolute Deviation

Variance and Standard Deviation

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Definition of Dispersion

Dispersion (or variability)- an expression of the extent to which the

observations are spread out in a distribution

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Range

Range- the difference between the highest and lowest values in a

distribution

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Range

Range- the difference between the highest and lowest values in a

distribution

Formula

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Range

Range- the difference between the highest and lowest values in a

distribution

Formula

Range = highest value − lowest value

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Range

Example

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Range

Example
1. Ten selected employees of a shopping mall in Urdaneta City receive
daily wages of

800 500 720 675 600

718 790 745 810 692
What is the range of these wages?

Prof. J. S. Tullao Basic Statistics Lecture 3 5 / 22

Range

Example
1. Ten selected employees of a shopping mall in Urdaneta City receive
daily wages of

800 500 720 675 600

718 790 745 810 692
What is the range of these wages?

Solution

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Range

Example
1. Ten selected employees of a shopping mall in Urdaneta City receive
daily wages of

800 500 720 675 600

718 790 745 810 692
What is the range of these wages?

Solution
Range = highest value − lowest value
= 810 − 500
Range = 310

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Mean Absolute Deviation

Mean Absolute Deviation- average of the absolute values of the deviations

around the mean

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Mean Absolute Deviation

Mean Absolute Deviation- average of the absolute values of the deviations

around the mean

Formula

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Mean Absolute Deviation

Mean Absolute Deviation- average of the absolute values of the deviations

around the mean

Formula
P
| x − x̄ |
MAD =
n

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Mean Absolute Deviation
Example

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Mean Absolute Deviation
Example
1. Ten selected employees of a shopping mall in Urdaneta City receive
daily wages of

800 500 720 675 600

718 790 745 810 692
Find the mean absolute deviation.

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Mean Absolute Deviation
Example
1. Ten selected employees of a shopping mall in Urdaneta City receive
daily wages of

800 500 720 675 600

718 790 745 810 692
Find the mean absolute deviation.
Solution

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Mean Absolute Deviation
Example
1. Ten selected employees of a shopping mall in Urdaneta City receive
daily wages of

800 500 720 675 600

718 790 745 810 692
Find the mean absolute deviation.
Solution
P
x
x̄ =
n
800 + 500 + 720 + · · · + 692
=
10
7, 050
=
10
x̄ = 705

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Mean Absolute Deviation

x
800
500
720
675
600
718
790
745
810
692

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Mean Absolute Deviation

x x − x̄
800 95
500 −205
720 15
675 −30
600 −105
718 13
790 85
745 40
810 105
692 −13

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Mean Absolute Deviation

x x − x̄ | x − x̄ |
800 95 95
500 −205 205
720 15 15
675 −30 30
600 −105 105
718 13 13
790 85 85
745 40 40
810 105 105
692 −13 13 P
706 =⇒ | x − x̄ |

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Mean Absolute Deviation

x − x̄ | x − x̄ |
P
x | x − x̄ |
MAD =
800 95 95 n
500 −205 205 706
=
720 15 15 10
675 −30 30 MAD = 70.6
600 −105 105
718 13 13
790 85 85
745 40 40
810 105 105
692 −13 13 P
706 =⇒ | x − x̄ |

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Variance and Standard deviation

Variance- average of the squared deviations about the mean

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Variance and Standard deviation

Variance- average of the squared deviations about the mean

Standard deviation- the square root of the variance

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Variance and Standard deviation

Variance- average of the squared deviations about the mean

Standard deviation- the square root of the variance

Formulas

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Variance and Standard deviation

Variance- average of the squared deviations about the mean

Standard deviation- the square root of the variance

Formulas
sample variance
(x − x̄)2
P
2
s =
n−1

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Variance and Standard deviation

Variance- average of the squared deviations about the mean

Standard deviation- the square root of the variance

Formulas
sample variance
(x − x̄)2
P
2
s =
n−1

sample standard deviation

sP
(x − x̄)2
s=
n−1

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Variance and Standard deviation
Examples
1. A sample of 5 milktea shops which are operating in Urdaneta City have
daily profit of
3, 100 2, 825 2, 800 3, 290 4, 200.
Find the variance and standard deviation.

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Variance and Standard deviation
Examples
1. A sample of 5 milktea shops which are operating in Urdaneta City have
daily profit of
3, 100 2, 825 2, 800 3, 290 4, 200.
Find the variance and standard deviation.

Solution

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Variance and Standard deviation
Examples
1. A sample of 5 milktea shops which are operating in Urdaneta City have
daily profit of
3, 100 2, 825 2, 800 3, 290 4, 200.
Find the variance and standard deviation.

Solution

P
x
x̄ =
n
3, 100 + 2, 825 + 2, 800 + 3, 290 + 4, 200
=
5
16, 215
=
5
x̄ = 3, 243
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Variance and Standard deviation

x
3, 100
2, 825
2, 800
3, 290
4, 200

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Variance and Standard deviation

x x − x̄
3, 100 −143
2, 825 −418
2, 800 −443
3, 290 47
4, 200 957

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Variance and Standard deviation

x x − x̄ (x − x̄)2
3, 100 −143 20,449
2, 824 −418 174,724
2, 800 −443 196,249
3, 290 47 2,209
4, 200 957 915,849
(x − x̄)2
P
1, 309, 480 =⇒

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Variance and Standard deviation
Variance

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Variance and Standard deviation
Variance
(x − x̄)2
P
2
s =
n−1
1, 309, 480 1, 309, 480
= =
5−1 4
s 2 = 327, 370

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Variance and Standard deviation
Variance
(x − x̄)2
P
2
s =
n−1
1, 309, 480 1, 309, 480
= =
5−1 4
s 2 = 327, 370

Standard deviation
sP
(x − x̄)2
s=
n−1
r r
1, 309, 480 1, 309, 480
= =
5−1 4
s = 572.16

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Variance and Standard deviation

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Variance and Standard deviation
2. Ten selected employees of a shopping mall in Urdaneta City receive
daily wages of

800 500 720 675 600

718 790 745 810 692
Find the variance and standard deviation of these wages.

Prof. J. S. Tullao Basic Statistics Lecture 3 17 / 22

Variance and Standard deviation
2. Ten selected employees of a shopping mall in Urdaneta City receive
daily wages of

800 500 720 675 600

718 790 745 810 692
Find the variance and standard deviation of these wages.

Solution

Prof. J. S. Tullao Basic Statistics Lecture 3 17 / 22

Variance and Standard deviation
2. Ten selected employees of a shopping mall in Urdaneta City receive
daily wages of

800 500 720 675 600

718 790 745 810 692
Find the variance and standard deviation of these wages.

Solution
P
x
x̄ =
n
800 + 500 + 720 + · · · + 692
=
10
7, 050
=
10
x̄ = 705

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Variance and Standard deviation

x
800
500
720
675
600
718
790
745
810
692

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Varaince and Standard deviation

x x − x̄
800 95
500 −205
720 15
675 −30
600 −105
718 13
790 85
745 40
810 105
692 −13

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Variance and Standard deviation

x x − x̄ (x − x̄)2
800 95 9,025
500 −205 42,025
720 15 225
675 −30 900
600 −105 11,025
718 13 169
790 85 7,225
745 40 1,600
810 105 11,025
692 −13 169
(x − x̄)2
P
83, 388 =⇒

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Variance and Standard deviation
Variance

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Variance and Standard deviation
Variance
(x − x̄)2
P
2
s =
n−1
83, 388 83, 388
= =
10 − 1 9
s 2 = 9, 265.33

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Variance and Standard deviation
Variance
(x − x̄)2
P
2
s =
n−1
83, 388 83, 388
= =
10 − 1 9
s 2 = 9, 265.33

Standard deviation
sP
(x − x̄)2
s=
n−1
r r
83, 388 83, 388
= =
10 − 1 9
p
= 9, 265.33
s = 96.26
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Thank you for your attention.

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