Measures of Dispersion Presentation

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Measures of Dispersion Presentation

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You are on page 1of 33

RHEAN T. URBIZTONDO

Student

Saturday 8:00am-2:00pm

CHAPTER 7

MEASURES OF DISPERSION

7.2 Raw Data

7.3 Tabulated Data

7.4 Grouped Data

7.5 Relative Measures of Dispersion

7.6 Variability in sample data

7.7 Conclusions

MEASURES OF DISPERSION

OBJECTIVES

» Determine the range and interquartile range for various

types of data

» Display variability graphically

» Understand the relative merits of the different measures

of dispersion

» Use the concept of variability to better understand survey

data

DEFINITION

Measures of location describe the central tendency of

the data. They include the mean, median and mode.

Measures of dispersion describe the spread of the data.

They include the range, interquartile range, standard

deviation and variance.

Whats the use of measures of dispersion?

In market research, for example we are interested not

only in the typical values but also in whether opinions or behaviours

are fairly consistent or vary considerably.In business processes there

exists variability: variability in service provided, quality of products

produced, delivery of time orders and so on. Most Managers would

agree that one key to success is to reduce process variability.

7.1 The Measures of Dispersion

Range Will Measure Tabulated Data

Quartile Deviation Grouped Data

7.2 RAW DATA

Primary data that has not been processed for use

STANDARD DEVIATION

Measures the differences from the mean. It is directly

related to the mean, the two are usually quoted together.

So if you choose the mean as the most appropriate

measure of central location, then standard deviation

would be natural choice for a measure of dispersion.

Formula : √Σ( x - x )2

n

Where: x = value

x = Mean

n = total number of values

STANDARD DEVIATION

Example: First ten observations on the number of cars entering a car

park in ten minute intervals

10 22 31 9 24 27 29 9 23 12

Σx 196

1. Compute the mean x. Where x = n 10 = 19.6 cars

are positive. See next page

5. Average the squared differences to find the variance Σ( x - x )2 /n

6. Square root the variance to find standard deviation. √Σ( x - x )2

n

s = √Σ( x - x )2 = √ 684.40 = √ 68.44 = 8.27 cars

n 10

Example: 10 22 31 9 24 27 29 9 23 12

x ( x x) ( x x2)

10 -9.6 92.16

22 2.4 5.76

31 11.4 129.96

9 -10.6 112.36

24 4.4 19.36

27 7.4 54.76

29 9.4 88.36

9 -10.6 112.36

23 3.4 11.56

12 -7.6 57.76

196 684.40

RANGE

Simplest measure of spread of data. Defined as the

difference between the lowest and highest values.It

is more informative to quote the upper and lower

quartiles themselves.

Example: 10 22 31 9 24 27 29 9 23 12

the difference between them is 22.

The QUARTILE DEVIATION

also known as the semi-inter-quartile range. As a measure

of dispersion it is linked to the median. The Quartile

Deviation (QD) is: Q3 - Q1 26.25 - 9.75 16.5 = 8.25

QD = 2 2 2

Example: There are ten data value which can put

into order

Q1 = 9.75 Q2 = 22.50 Q3 = 26.25

2.75 5.5 7.75

( 9, 9, 10, 12, 22) (23, 24, 27, 29, 31 )

Q1 : (n+1)/4 = 10+1/4 = 2.75 = 9.75

Q3 : (3n+1)/4 = 3(10)+1/4 = 30+1/4 = 7.75

24+(3x3/4) = 24+2.25 = 26.25

TABULATED DATA

Data that is classified into tabular form

STANDARD DEVIATION

employees in the last quarter

0 410

1 430

2 290

3 180

4 110

5 20

The Calculations are shown in Table 7.3

x f fx (x - x ) (x - x)2 f(x - x )2

0 410 0 -1.451 2.1059 863.214

1 430 430 -0.451 0.2034 87.462

2 290 580 0.549 0.3014 87.406

3 180 540 1.549 2.3994 431.892

4 110 440 2.549 6.4974 714.714

5 20 100 3.549 12.5954 251.908

Total 1440 2090 2436.596

Σfx 2090

x=

Σf x = 1440 = 1.451 days lost

n 1440

RANGE

Looking at the data in Table 7.2 it is easy to see that the

range is five with a lowest value of zero and a highest value

of five.

THE QUARTILE DEVIATION

Cumulative

x f

frequency With 1440 items of data, the lower quartile will

be the (n/4)th item, (1440/4) = 360th item. The

0 410 410

upper quartile will be the (3n/4)th item,

1 430 840 = 410 + 430

(3(1440)/4)here 1080th item. ( Note that with

grouped data we just use (n/4) rather than

2 290 1130 = 840+ 290 (n+1)/4). This Q1 = 0 and Q3 = 2.

3 180 1310=1130+180

Q3 - Q1

QD = 2

4 110 1420=1310+110

5 20 1440=1420+20 2-0

QD = 2 =1

1440

GROUPED DATA

are data that has been bundled together in categories.Histograms and frequency tables

can be used to show this type of data.

STANDARD DEVIATION

When data is presented as a grouped frequency distribution we must determine whether

it is discrete or continuous ( as this will affect the way we view the range of values) and

determine the mid-points(see Section 6.3) Once the mid-points have been determined

we proceed as before using mid-point values for x and frequencies , as shown in Table

7.4)

Number of

Midpoint: 5/2 = 2.50

Expenditure Midpoint

on food

respondents fx (x - x ) (x - x )2 f(x - x )2 10 - 2.50 = 7.50

(f) (x)

5 but under 10 6 7.50 45.00 -11.59 134.328 805.968

Σfx 840

10 but under

x = n = 44 = 19.09

15

8 12.50 100.00 -6.59 43.428 347.424

15 but under

20

12 17.50 210.00 -1.59 2.528 30.336 = √Σf (x-x)2

20 but under

10 25 250.00 5.91 34.928 349.280

n

30

= 4438.632

30 but under

40

4 35 140.00 15.91 253.128 1012.512 44

40 but under = 10.04

50

2 45 90.00 25.91 671.328 1342.656

Table 7.5 The estimation of standard deviation using alternate formula

X f fx x2 fx2

2.50 2 5.00 6.25 12.50

7.50 6 45.00 56.25 337.50

12.50 8 100.00 156.25 1250.00

17.50 12 210.00 306.25 3675.00

25.00 10 250.00 625.00 6250.00

35.00 4 140.00 1225.00 4900.00

45.00 2 90.00 2025.00 4050.00

44 840.00 20,475.00

Σf Σf 44 44

RANGE

Theres a problem when using Range for grouped data. By the nature

of grouping,most data is left with open ended groups as the first and

last. This makes the range a much less useful measure of spread for

THE QUARTILE DEVIATION

Table 6.7 The determination of the median

Expenditure on food

respondents (f) (F)

Under 5 2 2

5 but under 10 6 8

10 but under 15 8 16

22nd observation

15 but under 20

12 28

5 intervals

20 but under 30 10 38

30 but under 40 4 42

40 or more 2 44

44

n/2 - F 44/2 - 16

median = l + i f = 15 + 5 12 = 17.50

Expenditure on Number of Cumulative

food respondents (f) Frequency (F)

Under 5 2 2

5 but under 10 6 8

10 but under 15 8 16 11th observation

15 but under 20 12 28

20 but under 30 10 38 33rd observation

30 but under 40 4 42

40 or more 2 44

44

Quartile range:

Q3 - Q1

Q1 (n x 1/4) = 44 x 1/4 =11th observation. 25 - 11.88 = 13.12

Q3 (n x 3/4) = 44 x 3/4 = 33rd observation.

To calculate the quartiles we adapt the median formula: Quartile Deviation:

i ( n/4 - F) 44/4 - 8 3 = 13.12

Q1 = l + f = 10 + 5 8 = 10+5 8 = 11.8 2

Q3 = l + f = 20 +10 10 = 20+10 10 = 25

End of the Report

THANK YOU!!!!!

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