Measure of Dispersion

DEFINITION OF MEASURE OF
DISPERSION
In statistics, dispersion (also called variability,
scatter, or spread) is the extent to which a
distribution is stretched or squeezed.

Common examples of measures of statistical

dispersion are the variance, standard deviation,
and interquartile range.
EXAMPLE
Centre: Same

Variation: Different

Year 2000: Close Dispersion Year

2015: Wide Dispersion

Better Quality Data: Data of Year 2000

 WHY MEASURE OF
DISPERSION

Serve as a basis for the To compare the variability

control of the of two or more series
variability
 WHY MEASURE OF
DISPERSION

Relia
ble

Determine the reliability of Facilitate the use of other

an average statistical measures.
 CHARACTERISTICS OF AN IDEAL
MEASURE OF DISPERSION
❖ It should be rigidly defined

❖ It should be easy to understand and calculate.

❖ Must be based on all observations of the data.

 CHARACTERISTICS OF AN IDEAL
MEASURE OF DISPERSION
❖ Must be easily subjected to further mathematical
operations
❖ It should not be unduly affected by the extreme
values.

❖ Must be least affected by the sampling

fluctuation.
Types of Measures of Dispersion
 Classification of
Measures of dispersion
in Statistics
 MEASURES
OF
DISPERSION

Algebraic Graphical

Absolute Relative
ALGEBRAIC MEASURE OF DISPERSION

× Mathematical way to calculate the

measure of dispersion.

Example: Calculation of Standard Deviation

or Co-efficient of Variance by using
numbers and formulas.
CHARACTERISTICS OF ALGEBRAIC
MEASURE OF DISPERSION
• Mathematical Way

• Algebraic Variables are used

• Numerical Figures are used here

• Formulas & Equations are used

 GRAPHICAL MEASURE OF
DISPERSION
× The way to calculate the measure of
dispersion by figures and graphs.

Example: Calculation of Dispersion among

the heights of the students of a class
from the average height using a graph.
CHARACTERISTICS OF GRAPHICAL
MEASURE OF DISPERSION
• It is a visual way of measuring dispersion

• Graphs, figures are used

• Sometimes, it cannot give the actual result

• It helps the reader to have an idea about the

dispersion practically at a glance
 ABSOLUTE MEASURE OF DISPERSION

Absolute Measure of Dispersion gives an idea about the

amount of dispersion/ spread in a set of observations. These
quantities measures the dispersion in the same units as
the units of original data. Absolute measures cannot be
used to compare the variation of two or more series/ data
set.
Classification of Algebraic Measure
of Dispersion
 RELATIVE MEASURE OF DISPERSION

These measures are a sort of ratio and are called coefficients.

Each absolute measure of dispersion can be converted into
its relative measure.

It can be used to compare two or more data sets

 DIFFERENCE BETWEEN ABSOLUTE AND RELATIVE
MEASURE OF DISPERSION
Absolute Measure Relative Measure
1

It has the variable unit It has no unit

It is not expressed in terms of percentage It is expressed in terms of percentage

3
This is calculated from original data These measure are calculated absolute
measures
 Absolute Measure Relative Measures

No use of ratio Use of ratio

5
These measure cannot be used to compare the These measure can be used to compare the
variation of two or more series variation of two or more series.

6
There is no change in variables and with the There is changes in variables with relative
absolute measures. measures.
Absolute measures of
Dispersion
 CLASSIFICATION OF
ABSOLUTE MEASURE

Range Mean Deviation

Quartile Deviation Standard

Deviation
 “
Range
 Range

The difference between the maximum and

minimum observations in the data set.

R= H-L
5, 10 , 15 , 20, 7, 9, 12 , 17 , 13 , 6 , 10 , 11, 17 , 16

Range = H- L
= 20- 5
= 15
 MERITS AND DEMERITS OF
RANGE
Gives a rough answer and is
Simple and easy not based on all observation
to understand
Changes from one sample to
the next in population

Cannot be calculated in open

ended distributions
Gives a quick answer
Affected by sampling
fluctuations
 “
Mean deviation
 Mean deviation

The average of the absolute values of

deviation from the mean(median or mode) is
called mean deviation.

𝒇|𝒙−𝒙|
δ=Σ
𝑵
 MERITS OF MEAN
DEVIATION

Can be Is not Used to

Simplifies calculated by
affected by make
calculatio mean,
median and extreme healthy
ns
mode measures comparisons
 DEMERITS OF MEAN
DEVIATION

Mathematically
illogical to Not suitable
assume all Not reliable for comparing
negatives as series
positives
 “
Quartile
Deviation
 QUARTILE DEVIATION

The half distance between 75th

percentile i.e. 3rd quartile (Q1)
and 25th percentile i.e. 1st
quartile (Q3) is Quartile
deviation or Interquartile range.

Q.D = Q3 – 𝟐Q1
 MERITS OF QUARTILE
DEVIATION

Has better result than

range mode.

Is not affected by
extreme items
 Demerits of Quartile Deviation
It is completely dependent on the central
items.

All the items of the frequency distribution are

not given equal importance in finding the
values of Q1 and Q3

Because it does not take into account all the

items of the series, considered to be
inaccurate.
 “
Standard
Deviation
 STANDARD DEVIATION

Standard deviation is calculated as the

square root of average of squared
deviations taken from actual mean.

It is also called root mean square

deviation.
𝟐
𝒙 −𝒙
σ=√ 𝒏
99.7%

95.4%
68.2%
 MERITS OF STANDARD DEVIATION

It takes into account all the items and is capable of

future algebraic treatment and statistical analysis.

It is possible to calculate

standard deviation for two or

more series

This measure is most suitable for making

comparisons among two or more series about
variability.
 DEMERITS OF STANDARD DEVIATION

It is difficult to
compute.
It assigns more
weights to extreme
items and less
weights to items
that are nearer to
mean.
Classifications of
Relative Measures
of Dispersion
 CHART OF
CLASSIFICATION
Relative
Measure

Coefficient of Coefficient of
Coefficient of Quartile Mean Coefficient of
Range Deviation Deviation Variation
COEFFICIENT OF
Range
 COEFFICIENT OF
RANGE
The measure of the distribution based on range
is the coefficient of range also known as range
coefficient of dispersion.
Formula:
𝑅𝑎𝑛𝑔𝑒
Coefficient of Range=
𝐻𝑖𝑔ℎ𝑒𝑠𝑡 𝑉𝑎𝑙𝑢𝑒+𝐿𝑜𝑤𝑒𝑠𝑡 𝑣𝑎𝑙𝑢𝑒
× 100
Coefficient of
Quartile Deviation
 COEFFICIENT OF QUARTILE
DEVIATION
A relative measure of dispersion based on the
quartile deviation is called the coefficient of
quartile deviation.

Formula:
Coefficient of Quartile Deviation = 𝑄𝑢𝑎𝑟𝑡𝑖𝑙𝑒𝑀𝑒𝑑𝑖𝑎𝑛
𝐷𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛
× 100

Q3 – Q1
=Q 3 + Q1
× 100 [By Simplification]
 Merits & Demerits of Coefficient of Quartile
Deviation

Merits DEMERITS
 Sampling fluctuation
1. Easily understood  Ignorance of last 25% of data
2. Not much Mathematical sets.
Difficulties  Values being irregular
3. Better Result than
Coefficient of Range
 Coefficient of
Mean Deviation
 COEFFICIENT OF MEAN
DEVIATION
The relative measure of dispersion we get by dividing
Mean Deviation by Mean or Median, is called Coefficient
of Mean Deviation.

Formula:
Coefficient of MD= 𝑀𝑒𝑎𝑛 𝐷𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛
𝑀𝑒𝑑𝑖𝑎𝑛 𝑜𝑟 𝑀𝑒𝑎𝑛
× 100
 Merits & Demerits of Coefficient of Mean
Deviation

Merits
1. Better Result than Range
& Quartile Coefficient.
2. Least sampling fluctuation.
DEMERITS
 Fractional Average.
 Cannot be used for
sociological studies

 Less reliable than

3. Rigidly defined Coefficient of Variation
Coefficient
of
Variation
 COEFFICIENT OF
VARIATION
Coefficient of Variation is a measure of spread
that describes the amount of variability relative to
the mean.

Formula:
Coefficient of Variation= 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝐷𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛
𝑀𝑒𝑎𝑛
× 100
 Merits & Demerits of Coefficient of Variation

MERITS Demerits
1. Best one  It is impossible to calculate if
Mean is 0
2. Most appropriate one
 It is difficult to calculate
if the values are both
3. Based on Mean and Standard positive and negative
Deviation numbers & if the mean is
close to 0.
4. COV is dimensionless or non-
unitized
 PRACTICAL USES OF COEFFICIENT OF
VARIANCE
INVESTMENT ANALYSIS

STOCK MARKET

RISK EVALUATION

COMBINED STANDARD DEVIATION OF SEVERAL GROUPS

PERFORMANCES OF TWO PLAYERS

INDUSTRIES & FACTORIES

Mathematical
Application
 COEFFICIENT OF RANGE
Let 1,2,4,6,7 is a set of values of a distribution.
Here,
Highest Value, XH=7 & Lowest Value, XL=1
So, Range, R= 7-1 = 6
𝐑
Now, Coefficient of Range = × 100
XH + XL
𝟔
= 𝟕 +𝟏
×100
=75%
 COEFFICIENT OF QUARTILE
d e v i a t io n
Le t th e nu m b er of students in 5 classes are 110,
150, 180, 190, 240
𝐍+𝟏is a set of values.
Here, Q1 = size 𝟒 th item =
of 130
𝟑(𝐍+𝟏)
And, Q3 = 𝟒
th item =
size of 215
Q3 – Q1
So, Coefficient of Quartile DeviationQ=
3 + Q1
×
100
215−130
= 215+130 × 100= 24.64 %
COEFFICIENT OF MEAN DEVIATION
Let the ages of 5 boys in a class is 12, 14, 14, 15, 18.

So their Mean, 𝐱 = 𝟏𝟐+𝟏𝟒+𝟏𝟒+𝟓𝟏𝟓+𝟏𝟖 = 14.6

Mean Deviation, MD =Σ | 𝒙𝑵− 𝒙 |

=|12−14.6| + |14−14.6| + |14− 14.6|+

𝟓
|15−14.6| + |18−14.6|
= 1.52
Now, the Coefficient of MD= 𝐌𝐃 × 𝟏𝟎𝟎 = 𝟏.𝟓𝟐 × 𝟏𝟎𝟎 = 10.41%
𝐱 𝟏𝟒.𝟔
 COEFFICIENT OF VARIATION
r
Suppose the returns on an investment for 4 years is
Tk.1000, Tk.3000, Tk.4500 & Tk.5000.

So, Mean, 𝐱 = 3375

Standard Deviation, SD = 1796.99
So,
Coefficient of Variation, CV= 𝐒 𝐃 × 100
𝐱
= 𝟏𝟕𝟗𝟔
𝟑𝟑𝟕𝟓
.𝟗𝟗
× 100
= 53.24%
Sample Problem 1
The daily sale of sugar in a certain grocery shop is
given below :
Monday Tuesday Wednesday Thursday Friday
Saturday 75 kg 120 kg 12 kg 50 kg 70.5 kg 140.5
kg respectively.
 No of Days sale of sugar
Monday 60

“
Tuesday 120
Wednesday 10
Thursday 50
Friday 70
Saturday 140
𝜮 𝒐𝒇 𝑫𝒂𝒚𝒔 = 𝟔 𝜮𝒙 = 𝟒𝟓𝟎

Mean, 𝑥 = 𝑥
= 4𝟓𝟎
= 7𝟓
𝑛 6
 x 𝒙𝟐
60 3600
120 14400

“
10 100
50 2500
70 4900
140 19600
𝜮𝒙 = 𝟒𝟓𝟎 𝜮𝒙𝟐= 45100

𝜮𝒙 𝟐 𝟒𝟓𝟎 𝟐
Standard deviation: 𝝈 𝜮𝒙𝟐
𝒏 − 𝒏 = 𝟒𝟓𝟏𝟎𝟎
𝟔 − 𝟔 =
= 𝟕𝟓𝟏𝟔. 𝟔𝟔 − 𝟓𝟔𝟐𝟓 =
𝟒𝟑. 𝟒𝟗
 QUARTILE
Sample Problem 2 DEVIATION

The marks of 7 students in Mathematics result are given below :

70, 85, 92,68, 75, 96, 84
Find out-
•First Quartile Deviation
•Third Quartile Deviation
 QUARTILE DEVIATION
Arranging the data in ascending order we
get, 68,70,75,84,85,92,96

× First quartile ×Third Quartile

𝐧+𝟏
𝐭𝐡 𝟑 𝒏 + 𝟏 𝒕𝒉
𝐐𝟏 = 𝐬𝐢𝐳𝐞 𝐨𝐟 𝐢𝐭𝐞𝐦 𝑸𝟑 = 𝒔𝒊𝒛𝒆 𝒐𝒇 𝒊𝒕𝒆𝒎
𝟒 𝟒
𝒕𝒉
𝟕+𝟏 𝐭𝐡 = size of 𝟑 𝟕+𝟏𝟒 𝒊𝒕𝒆𝒎
= size of 𝐢𝐭𝐞𝐦
𝟒 = size of 6th item
= size of 2nd item. =92
= 70
Measures of dispersion

Slide
Measures of dispersion
■ Learning Objectives
• Calculate common measures of
dispersion from grouped and ungrouped
data (including the range, interquartile
range, mean deviation, and standard
deviation)
• Calculate and interpret the coefficient of
variation

Slide
What is measures of dispersion?
(Definition)
Central tendency measures do not
reveal the variability present in the
data.
Dispersion is the scatteredness of
the data series around it average.
Dispersion is the extent to which
values in a distribution differ from
the average of the distribution.
Slide
Why we need measures of dispersion?
(Significance)

⮚Determine the reliability of an

average
⮚Serve as a basis for the control of
the variability
⮚To compare the variability of two or
more series and
⮚Facilitate the use of other statistical
measures.
Slide
 Dispersion Example

■ X:Mean Time – 14.6 minutes

■ Y:Mean waiting time 14.6 minutes
■ What is the difference in the two
series?

X: High variability, Less consistency.

Y: Low variability, More Consistency
Slide
 Characteristics of an Ideal Measure of
Dispersion
1. It should be rigidly defined.
2. It should be easy to understand and easy to calculate.
3. It should be based on all the observations of the data.
4. It should be easily subjected to further
mathematical treatment.
5. It should be least affected by the sampling fluctuation .
6. It should not be unduly affected by the extreme values.

Slide
 Measures of Dispersion

■ There are three main measures of

dispersion:
– The range
– The Interquartile range (IQR)
– Variance / standard deviation

7
Slide
 Measures of
dispersion
■ Range
The range is defined as the difference between the largest
score in the set of data and the smallest score in the set of
data, XL - XS
• sensitive to extreme scores;
• compensate by calculating interquartile range (distance between
the 25th and 75th percentile points) which represents the range of
scores for the middle half of a distribution
Usually used in combination with other measures of dispersion.
10
Slide
 Rang
e

Source: www.animatedsoftware.com/ statglos/sgrange.htm

10
Slide
 Interquartile range

■ Measures the range of the middle 50% of the values only

■ Is defined as the difference between the upper and lower quartiles

Interquartile range = upper quartile - lower quartile

= Q3 - Q1

10
Slide
 The Semi-Interquartile Range

■ The semi-interquartile range (or SIR) is defined as the

difference of the first and third quartiles divided by
two
– The first quartile is the 25th percentile
– The third quartile is the 75th percentile
■ SIR = (Q3 - Q1) / 2

1
Slide
1
 SIR Example
■ What is the SIR for the
data to the right? 2
■ 25 % of the scores are 4 5 = 25th %tile

below 5 6
– 5 is the first quartile 8
■ 25 % of the scores are 10
above 25 12
– 25 is the third quartile 14
25 = 75th %tile
20
■ SIR = (Q3 - Q1) / 2 =
30
(25 - 5) / 2 = 10
60
Slide
1 2
 When To Use the SIR

■ The SIR is often used with skewed data as it is

insensitive to the extreme scores

13
Slide
13
 The mean deviation

■ Measures the ‘average’ distance of each observation away from the

mean of the data

■ Gives an equal weight to each observation

■ Generally more sensitive than the range or interquartile range, since a

change in any value will affect it

Slide
 Actual and absolute deviations from
mean
A set of x values has a mean of x
■ The residual of a particular x-value is:
Residual or deviation = x- x
■ The absolute deviation is:

x-x

Slide
 Mean deviation

■ The mean of the absolute deviations

x x
Mean deviation
n

Slide
 To calculate mean deviation
1.Calculate mean of data Find

2.Subtract mean from each For each x, find

observation x x
Record the differences
3.Record absolute value of Find
each residual x x for each x

4.Calculate the mean of x x

Meandeviation
the absolute values n
Add up absolute values
and divide by n

Slide
 The standard deviation
■ Measures the variation of observations from
the mean
■ The most common measure of dispersion
■ Takes into account every observation
■ Measures the ‘average deviation’ of
observations from mean
■ Works with squares of residuals not absolute
values—easier to use in further calculations

Slide
 Standard deviation of a population δ

■ Every observation in the population is used.

2
(x x)
Standard deviation δ
n

■ The square of the population standard deviation

called
is the variance.
Variance δ2

Slide
 Standard deviation of a sample s

■ In practice, most populations are very large and it

is more common to calculate the sample standard
deviation.
2
(x-
Standard deviation vδ= x )
n -1
■ Where: (n-1) is the number of observations in the
sample

Slide
To calculate standard deviation
1. Calculate the mean x
2. Calculate the residual for each x x
x
3. Square the residuals ( x x)2

4. Calculate the sum of the

x x2
squares
5. Divide the sum in Step 4 by (n- x x2
1) n 1
6. Take the square root of x x2
quantity in Step 5 n 1

Slide
 Uses of Standard
deviation
■ Uses of the standard deviation

– The standard deviation enables us to determine,

with a great deal of accuracy, where the values of
a frequency distribution are located in relation to
the mean. We can do this according to a theorem
devised by the Russian mathematician
P.L. Chebyshev (1821-1894).

Slide
 Coefficient of variation

■ Is a measure of relative variability used to:

– measure changes that have occurred in a population over time
– compare variability of two populations that are expressed in different
units of measurement
– expressed as a percentage rather than in terms of the units of the
particular data

Slide
 Formula for coefficient of
variation
■ Denoted by V

s
V % 100
x

x
where = the mean of the sample
s = the standard deviation of the sample

Slide
 Summary

■ Measures of Dispersion
– no ideal measure of dispersion exists
■ standard deviation is the most important
measure of Dispersion.
• it is the most frequently used
• the value is affected by the value of every observation in the data
• extreme values in the population may distort the data

Slide
 REFERENCE
1. Mathematical Statistics- S.P Gupta
2. Statistics for management- Richard I.
Levin, David S. Rubin
3. Biostatistics A foundation for Analysis in the
Health Sciences.
■ Lecture by
■ Dr Zahid Khan
■ King Faisal University,KSA.
Slide