DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH

Name : Dr.G.R.Jyothi
Designation : Lecturer
Branch : DCCP
Institute : SGM Government Polytechnic, Abdullapurmet
Semester : II Yr / 3RD Semester
Sub. Name : QUANTITATIVE TECHNIQUES – I
Sub. Code : CCP-303
Major Topic : Dispersion, Range & Co-Efficient Of Range
Duration : 50 Minutes
Sub. Topic : Various Measures of Dispersion
Teaching Aids : PPTs

CCP303.56 1
Objectives
On Completion of this period, you would
be able to understand:

 Various Measures of Dispersion

 Absolute and Relative Measures of
Dispersion

CCP303.56 2
Recap
 What is Dispersion
 Various objectives of dispersion
 Ascertaining the reliability of Average
 Basis for control of variability
 Compare series for their variability
 Facilitates use of other statistical measures
 Properties of Dispersion

CCP303.56 3
Introduction

 Absolute & Relative Measures of Variation

 Methods or Various Measures of Dispersion
 To know the dependency of values at particular
position
 To know the calculation measures of Dispersion

CCP303.56 4
 MEASURES OF DISPERSION

ALGEBRAIC GRAPHIC
(ABSOLUTE AND RELATIVE) (LORENZ CURVE

RANGE

QUARTILE
DEVIATION

MEAN
DEVIATION

STANDARD
DEVIATION

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Absolute Measure of Dispersion

 What is Absolute?
 Expressed in the same Statistical unit
in which original data are given
 Ex. Rupees, kgs, tonnes, etc.,

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Absolute Measure Contd

 Used to compare the variation in two

distributions while variables are expressed
in same units having same Average size

CCP303.56 7
Relative Measure of Dispersion

Ratio of a measure of absolute dispersion

to an appropriate average

CCP303.56 8
Relative Measure Contd

 Also called Coefficient of Dispersion

 Coefficient means
 A pure number
 Independent of the unit of measurement

CCP303.56 9
Relative Measure Contd

 2 sets of data expressed in different units

 Eg. Quintals of Sugar & tonnes of Sugarcane
 Manager’s salary compared to workers’ bonus

CCP303.56 10
Computing Relative Dispersion

• While computing,
• The Average used as base
• Should be same from which absolute
deviations are measured

CCP303.56 11
Computing Relative Contd

 AM should be used with Standard Deviation

 Arithmetic Mean or Median with the Mean

Deviation

CCP303.56 12
Important Methods of Studying
Variation

1. Range
2. Inter-quartile Range and
3. Quartile Deviation
 These are positional measures
 As they depend on values at
particular position in distribution

CCP303.56 13
Methods of studying of Variation
Contd

4. Mean Deviation or Average Deviation

5. The Standard Deviation
6. The Lorenz Curve (Graphic Method)
 Above (4 & 5) are calculation measures of
Dispersion or Deviation
 Because all the values are used in their
calculation

CCP303.56 14
Brief explanation to the Methods
of studying Variation

I. Range
 Simplest Method
 Difference between Smallest and Largest items

CCP303.56 15
Briefly

II. Interquartile Range and the Quartile

Deviation
 Range includes the middle 50% of the
distribution
 Represents the difference between the Third
Quartile and First Quartile

CCP303.56 16
Briefly

III. Mean Deviation (or) Average Deviation

 Average difference between the items in a
distribution and Median or Mean of that series
 Sum of deviations of items from Median is
minimum, when signs are ignored

CCP303.56 17
Briefly

IV. Standard Deviation (б  sigma)

 Introduced by Karl Pearson in 1893
 Most important and widely used
 Also called “Root-Mean Square Deviation”
 Square root of Means of squared
deviations from AM
 Measures the absolute dispersion

CCP303.56 18
Briefly
V. Lorenz Curve
 Devised by Max O.Lorenz, a famous economic
statistician
 Graphic method of studying dispersion
 Cumulative Percentage Curve
 Used in distribution of wealth & income
 Study the distribution of profits, wages,
turnover, etc
 Study of degree of inequality in distribution of
income and wealth

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Example of Lorenz Curve

Since Curve B is farthest from diagonal line, it represents greater inequality

Figure 1.1
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Summary

 Five Important methods of

Measures of Dispersion
 Absolute measures expressed in the same
unit as the distribution
 Relative measures expressed in the ratio and

also called coefficient of dispersion

CCP303.56 21
Quiz

• Lorenz Curve is Graphic Method.

• Range is the difference between the
Smallest and largest items
3. Standard Deviation is introduced by
Karl Pearson

CCP303.56 22
Frequently Asked Questions

1. List any four measures of dispersion

2. Briefly explain what is Absolute & Relative
Measures of Variation
3. Briefly explain the study of Lorenz Curve
measure of dispersion
4. Briefly explain Standard Deviation as
ameasure of dispersion

CCP303.56 23
Assignment

1. Briefly explain the important methods of studying

Dispersion.

CCP303.56 24