Business Analytics Assignment

1) Meaning of Variation or Dispersion
- Variation or Dispersion is the extent to which a distribution of values in a data

set is stretched or squeezed. The examples of it are the variance, standard deviation,
and inter quartile range. It is an essential concept in statistics, because it allows us to
understand how much the values in a data set vary. Several measurements of
dispersion can be used to quantify the amount of variation in a data set.
2) Meaning and uses of different terms and formulas for:
2.1 Range
- is the spread of your data from the lowest to the highest value in the
distribution. It is a commonly used measure of variability. It is the result of subtracting the
sample maximum and minimum.
Formula:
R=H-L
Where:
R = range
H = highest value
L = lowest value
- The range is calculated by subtracting the lowest value from the highest value.
While a large range means high variability, a small range means low variability in a
distribution.
2.2 Mean Deviation

- deviation is a measure that is used to find the difference between the observed
value and the expected value of a variable. The deviation is the distance from the center
point. It is used to calculate how far the values fall from the middle of the data set.
Formula
[Σ |X – µ|]/N
Where:
Σ = addition of values
X = value in the data set
µ = mean of the data set
N = number of data values
| | = absolute value, which ignores the “-” symbol
- to compute how far the values in a data set are from the center point. Mean,
median, and mode all form center points of the data set.
2.3
Variance and Standard deviation of population and sample both for grouped
or ungrouped data
Variance
- the expected value of the squared variation of a random variable from its mean
value, in probability and statistics. Informally, variance estimates how far a set of
numbers (random) are spread out from their mean value.The value of variance is equal
to the square of standard deviation, which is another central tool.
Variance is symbolically represented by σ2, s2, or Var(X).

Standard Deviation
- is the degree of dispersion or the scatter of the data points relative to its mean,
in descriptive statistics. It tells how the values are spread across the data sample and it
is the measure of the variation of the data points from the mean. The standard deviation
of a data set, sample, statistical population, random variable, or probability distribution is
the square root of its variance.
(KULANG PAAA)
2.4 Coefficient of Variation

- Co-efficient of variation (CV) is a statistical measure of the dispersion of data
points in a data series around the mean. It represents the ratio of the standard deviation
to the mean, and it is a useful statistic for comparing the degree of variation from one
data series to another, even if the means are drastically different from one another.
Formula:
CV=μσ
Where:
σ = standard deviation
μ = mean
- To calculate the CV for a sample, the formula is:
CV=s/x∗100
Where:
s = sample
x̄ = mean for the population
2.5 Skewness and Kurtosis and graphs with interpretations

Skewness
- skewness is a degree of asymmetry observed in a probability distribution that

deviates from the symmetrical normal distribution (bell curve) in a given set of data. A
skewed data set, typical values fall between the first quartile (Q1) and the third quartile
(Q3).
Types of Skewness
 Positive Skewed or Right-Skewed (Positive Skewness)
- positively skewed or right-skewed distribution has a long right tail. It is a sort of
distribution where the measures are dispersing, unlike symmetrically distributed data
where all measures of the central tendency (mean, median, and mode) equal each
other. This makes Positively Skewed Distribution a type of distribution where the mean,
median, and mode of the distribution are positive rather than negative or zero.
 Negative Skewed or Left-Skewed (Negative Skewness)
-negatively skewed or left-skewed distribution has a long left tail; it is the

complete opposite of a positively skewed distribution. In statistics, negatively skewed
distribution refers to the distribution model where more values are plots on the right side
of the graph, and the tail of the distribution is spreading on the left side. the mean of the
data is less than the median (a large number of data-pushed on the left-hand side).
Negatively Skewed Distribution is a type of distribution where the mean, median, and
mode of the distribution are negative rather than positive or zero.
3) Find sample applications in business.

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1) Meaning of Variation or Dispersion

- Variation or Dispersion is the extent to which a distribution of values in a data

2) Meaning and uses of different terms and formulas for:

2.2 Mean Deviation

X = value in the data set

µ = mean of the data set

N = number of data values

| | = absolute value, which ignores the “-” symbol

Variance is symbolically represented by σ2, s2, or Var(X).

2.4 Coefficient of Variation

- To calculate the CV for a sample, the formula is:

2.5 Skewness and Kurtosis and graphs with interpretations

- skewness is a degree of asymmetry observed in a probability distribution that

 Negative Skewed or Left-Skewed (Negative Skewness)

-negatively skewed or left-skewed distribution has a long left tail; it is the

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