Measure of Dispersion is a statistical concept that quantifies the extent to which data points in
a dataset vary or deviate from a central value, such as the mean or median. It provides
information about the spread or variability within the data.
Use: Measures of dispersion are used to:
1. Understand the degree of variability or uncertainty in data.
2. Compare data sets to determine which one has more or less variation.
There are several types of measures of dispersion, including:
1. Range
2. Variance
3. Standard Deviation
4. Quartile Deviation (QD)
5. Coefficient of Variation (CV)
6. Mean Absolute Deviation (MAD)
Range is a simple measure of dispersion that quantifies the spread of data by calculating the
difference between the highest and lowest values in a dataset.
For Ungrouped Data, where you have individual data points, the formula for calculating
the range is:
Range=Maximum Value−Minimum ValueRange=Maximum Value−Minimum
Value
Ungrouped Data Example:
Suppose you have the following dataset of daily temperatures (in °C) for a week in
Karachi: 32,34,31,36,29,33,3732,34,31,36,29,33,37
To calculate the range for this data:
Range = Maximum Value - Minimum Value Range = 37°C (Maximum) - 29°C (Minimum)
Range = 8°C
So, the range of daily temperatures for the week is 8°C.
For Grouped Data, where data is presented in intervals or classes, finding the exact
maximum and minimum values might not be possible. Instead, you can estimate the
range using the upper limit of the highest interval and the lower limit of the lowest
interval. The formula for grouped data is:
Range=Upper Limit of Highest Interval−Lower Limit of Lowest Interval
Grouped Data Example:
Let's say you have data on the number of employees' ages (in years) in a company,
grouped into age intervals:
Years No. of Employees
20 - 29 12
30 - 39 18
40 - 49 15
50 – 59 9
To calculate the range for this grouped data:
Find the Upper Limit of the Highest Interval and the Lower Limit of the Lowest Interval:
Upper Limit of Highest Interval = 59 years
Lower Limit of Lowest Interval = 20 years
Now, calculate the range:
Range = Upper Limit of Highest Interval - Lower Limit of Lowest Interval Range = 59
years - 20 years Range = 39 years
So, the range of employee ages for the company is 39 years.
Variance is a measure of how individual data points in a dataset differ from the mean
(average) of that dataset. It quantifies the spread or dispersion of data points and
provides insights into how much the data values deviate from the central tendency.
Where you have individual data points, the formula for calculating the variance is as
follows:
̅̅̅̅2
∑(𝑋−𝑋)
Sample Variance (used for a subset of the population): 𝑆 2 = Ungrouped
𝑛
̅̅̅̅2
∑ 𝑓(𝑋−𝑋)
𝑆2 = Grouped
∑𝑓
∑(𝑋−µ)2
Population Variance (used for the entire population): 𝜎 2 = Ungrouped
𝑁
∑ 𝑓(𝑋−µ)2
𝜎2 = Grouped
∑𝑓
In these formulas:
X represents each data point.
𝑋̅ is the sample mean
n is the sample size
N is the population size
µ is the population mean
f is the frequency (the number of data points in each interval).
Ungrouped Data Example: Suppose you have the following dataset of daily
temperatures (in °C) for a week in Karachi:
32,34,31,36,29,33,3732,34,31,36,29,33,37
1. Variance for Ungrouped Data:
First, calculate the mean 𝑋̅ =32+34+31+36+29+33+377=2327≈33.14
Now, use the formula for the sample variance:
̅̅̅2
∑(𝑋 − 𝑋)
2
𝑆 = = 31.81
𝑛
