Measures of Dispersion

Dispersion

 Sample I : 7,8,9,10,11
 Sample II : 3,6,9,12,15
 Sample III : 1,5,9,13,17
 Dispersion

 In all the cases frequency = 5 & mean =9

Sample I Sample II Sample III

7 3 1
8 6 5
9 9 9
10 12 13
11 15 17
9 9 9
 Number of minutes 20
clients waited to see a  X:Mean Time – 14.6
consulting doctor
Consultant Doctor
minutes
X Y  Y:Mean waiting time
05 15 15 16 14.6 minutes
12 03 12 18  What is the difference
04 19 15 14 in the two series?
37 11 13 17
06 34 11 15

X: High variability, Less consistency.

Y: Low variability, More Consistency
 Dispersion

 If mean & frequency is given, we cannot form an idea in the above

case as to which series we are talking about. It means “mean”
alone is not enough to describe a data, we need another statistical
method to describe our samples. One such measure is dispersion.
Dispersion means “scatteredness “.

 It tells about homogeneity(less scattered) or heterogeneity(more

scattered) of the distribution.

Definition: It states numerically the extent to which

individual observations vary on the average.
Objective of Measures of Dispersion
Graphical explanation
 Characteristics of an ideal measures of dispersion

 It should be rigidly defined.

 Easy to calculate & easy to understand.
 Based on all the observation.
 Amenable to further mathematical treatment.
 Affected as little as possible by fluctuations of sampling.
Measures of Dispersion
Absolute Measures- Range and Quartile Deviation

1. Range: Difference between two extreme observations(Greatest & Smallest

observations). It is given by:
Range = Xmax – Xmin
It is not a reliable measure since depends only on two observations & hence
subjected to sample fluctuation.
2. Quartile Deviation(or semi interquartile range): It is given as

Better than range as it uses 50% of the data. But not a reliable measure as
ignores 50% of data.
Range
Coefficient of Range
Example
Practice Problem
Use, Merits and Demerits of range
Quartile deviation and Coefficient of Quartile
Deviation

Q3  Q1
2

where, Q3  Q1 is Interquartile Range

Quartile deviation and Coefficient of Quartile
Deviation
Computation of Quartile deviation and Coeff. Of
Quartile Deviation.
Computation of Quartile deviation and Coeff. Of
Quartile Deviation.
Computation of Quartile deviation and Coeff. Of
Quartile Deviation.
Computation of Quartile deviation and Coeff. Of
Quartile Deviation.

N 170 3 N 3  170
  42.5   127.5
4 4 4 4

==144.167

𝑄3 =𝑙+ (
h 3𝑁
𝑓 4 ) 10
−𝑐 =160+ (127.5 − 100 ) =169.167
30

3N 3  170
  127.5
4 4
Computation of Quartile deviation and Coeff. Of
Quartile Deviation.
 Solution

𝑄3 =𝑙+
h
𝑓 ( 3𝑁
4
−𝑐 )
𝑄1= 𝑙+
h
𝑓 ( 𝑁
4
−𝑐 ) 𝑄3 =30+
5
12
( 60 −53 )= 32.917

5 𝑄 3 −𝑄1 32.917 − 21.33

𝑄1= 20+ ( 20 −16 )= 21.33 = =5.7916
15 2 2
Merits and Demerits of Quartile Deviation
 Absolute Measures –Mean deviation

3.Mean Deviation: If xi/fi, i=1,2,3,…..n is the frequency distribution, it is

abbreviated as M.D. Symbolically,

1 1
M.D (X) 
N
f i xi  x OR M.D (X) 
N
f i xi  x

(For grouped) (for ungrouped)

1 1
f
M.D (M e ) 
N
i xi  M e
M.D (M e ) 
N
 x M i e

(For grouped) (for ungrouped)

Coefficient of Mean deviation

M .Dx M .Dx

Coefficient of M .Dx 
Coefficient of M .Dx 
x
M .DM e
Coefficient of M .DM e 

x
Me

M .DM e
Coefficient of M .DM e 
Me
Absolute Measures –Mean deviation

Modulus ignores the negative value.

It is better than range & quartile deviation as based on all the
observations.
But since it ignores the negative sign it is not fit for mathematical
treatment.
 M.D(X) 2.75
Coefficient of mean deviation    0.3055
X 9
Mean deviation From Median
 Absolute Measures –Standard deviation
 Standard Deviation: It is the positive square root of the squares
of the deviations of the given values from their arithmetic mean.
It is denoted as σ.
 For the frequency distribution xi/fi ; I = 1,2, ….. ,n,

OR

(For grouped)

Where x̅ , is the A.M of the distribution & ∑ fi = N. n=total no of

observation. Squaring overcomes the drawback of ignoring the
signs in mean deviation.
Absolute Measures continued
 Standard Deviation continued
Merits:
 It satisfies almost all the properties of an ideal measures of dispersion.
 Suitable for further mathematical treatment.
 Least affected by fluctuations of sampling.
Demerits:
 Extracting the square root is not comprehensible for a non mathematician.
 It gives greater weight to extreme values, hence not much famous among economist &
businessmen.
Instead of all pros & cons, It is considered the best & most powerful measure of
dispersion.
 Standard deviation of the combined series

If, there are two series with

x1, x2; means of two series.
σ1, σ2; standard deviation of two series.
n1, n2; sizes(freq.) of two series.
Then ,the standard deviation(σ) of the combined series of size (n1+n2) is given
by:
Variance

 Square of standard deviation is called variance. It is denoted as σ2

(Grouped)

Where, n = total no. of observation

Therefore,
 Measures of Relative dispersion

 When we have to compare the variability of two series which differ in their
averages & measuring units, we calculate coefficients of dispersion rather
than calculating dispersion. Some of the coefficients are:
Pracical problems