HAPPY VALENTINES

DAY AC201
MEASURES OF RELATIVE
DISPERSION, SKEWNESS
AND KURTOSIS
Introduction

As stated in the preceding chapter, the

absolute dispersion is the actual variation or
dispersion that is calculated from the various
measures of dispersion. These measures of
variations are expressed in terms of the same
unit of measure from which they are calculated.
Relative Dispersion

The measure that is expressed as the quotient of

the absolute dispersion or amount of variability,
and the average.

  Relative Dispersion =
Relative Dispersion

Two most commonly used measures of relative

dispersion:

■ The coefficient of variation (CV)

■ The coefficient of quartile deviation
(CQD)
The Coefficient of Variation

■ This is a type of measure of relative dispersion

that expressed the standard deviation as a
percentage of the mean
 

  𝜎
𝐶𝑉 = ∙100 % 𝑓𝑜𝑟 𝑝𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛 𝑑𝑎𝑡𝑎
´𝜇
Example

A dealer sells 2 classes of quality lamps, A and B.

Lamp A has a mean life span of 2,000 hours with a
standard deviation of 200 hours, while lamp B has
a mean life span of 2,500 hours with a standard
deviation of 300 hours.
a. Which lamp has the greater absolute dispersion?
b. Which lamp has the greater relative dispersion?
Example

The variability of the ages of 9 children whose

mean age is 10 years with a standard deviation
of 2 years, with their weights whose mean is 45
pounds with a standard deviation of 5 pounds,
calculate the coefficients of variation.
Example

A businessman calculated the average price of

variety A rice per kilo at P32 with a standard
deviation of P5.01 for a 6-month period. For
variety B rice, he recorded the following average
prices for the same period: P40, P38, P42, P33,
P41, and P28. He wishes to make a comparison
of the variations in the prices of the 2 rice
varieties.
The Coefficient of Quartile
Deviation
Another measure of relative dispersion that can
be used when the quartiles are known.

  𝑄 3 −𝑄 1
𝐶𝑄𝐷 = ∙ 100 %
𝑄 3 +𝑄 1
Example

Determine the coefficient of quartile deviation

for an ungrouped data whose Q1 = 20.5 and Q3
= 50.5
Example
Table 1. Average Production of 60
Average Employees
Number <cf
Productio of
n Employee
(classes) s
(f)
61 – 65 4 4
66 – 70 8 12
71 – 75 10 22
76 – 80 16 38
81 – 85 11 49
86 – 90 7 56
The Measures of Shape

The measures of shape or peakedness will

provide us additional data and information for a
more accurate description of a numerical data.

■ The measure of skewness

■ The measure of kurtosis
The Measure of Skewness

Skewness is defined as the degree of departure

from symmetry. A frequency curve that has a
longer tail to the right than to the left is said to
be skewed to the right or simply described
positively skewed distribution. Reversely, a
distribution is negatively skewed or skewed to
the left if it has a tail which is longer to the left
than to the right.
The Measure of Skewness

The direction of the skewness of a distribution is based on

the relationship between the mean and the median. If the
mean is higher than the median, the curve is skewed to
the right (positively skewed), but skewed to the left
(negatively skewed)if it is the reverse.
  𝟑( 𝑴𝒆𝒂𝒏 − 𝑴𝒆𝒅𝒊𝒂𝒏 )
𝑺𝑲 =
𝑺𝒕𝒂𝒏𝒅𝒂𝒓𝒅 𝑫𝒆𝒗𝒊𝒂𝒕𝒊𝒐𝒏

  𝟑( ´𝒙 − ~𝒙)
𝑺𝑲 =
𝑺
The Measure of Skewness

■ Also known as the Pearson coefficient of skewness (SK).

■ SK = 0, the distribution is symmetric
■ SK > 0, skewed to the right
■ SK < 0, skewed to the left
Example

■
Calculate
  the coefficient of skewness of the following frequency
distributions, given their corresponding means, medians, and standard
deviations, as follows:
a. Frequency Distribution A
Mean ( = 50.7
Median ( = 49.1
Standard Deviation (s) = 9.2
Example

■
b.   Frequency Distribution B
Mean ( = 75.3
Median ( = 76.7
Standard Deviation (s) = 6.8
The Measure of Kurtosis

The degree of peakedness of a frequency curve

of a distribution in relation to a normal
distribution is know as Kurtosis (Ku).
The Measure of Kurtosis

■ A frequency distribution
with a relatively high
curve or peak is called
leptokurtic.
The Measure of Kurtosis

■ A flat topped distribution,

where the values are
relatively even in
distribution about the
center is know as
platykurtic curve.
The Measure of Kurtosis

■A normal distribution
curve which does not
have a relatively high
curve or peak or is not
too flat is called
mesokurtic.
The Measure of Kurtosis

If KU = 3, mesokurtic
If KU > 3, leptokurtic
If KU < 3, platykurtic
The Measure of Kurtosis

■  
Ku = for ungrouped data

Ku = for grouped data

Example

■ Determine the measure of kurtosis using the

fourth moment about the mean for the
following 7 raw sample data: 3, 7, 10, 14, 18,
21, and 25.
Example

Table 3. Ages of 87 Managerial Employees

Age Number d
Classes f
31 – 35 5 -3
36 – 40 10 -2
41 – 45 18 -1
46 – 50 25 0
51 – 55 17 1
56 – 60 9 2
61 - 65 3 3