Unit1 4variability

Measures of
Variability
Measures the dispersion of data
Measures of Variability
 Measures of central tendency gives information about the middle

values of data.
 Thus, researchers can use another group of analytic tools,

measures of variability, to describe the spread or the dispersion
of a set of data.
Examples: (example from book)
 Range
 Variance
 Standard Deviation
Range
 Range is the difference of the highest and lowest value of the
given data set.
Formula: Range= Largest value-Smallest value
 It is a single numerical value

 Sometimes it can be written as ordered pair
(Largest value, Lowest Value)
Coefficient of Range: Coefficient of range can be calculated
with the following formula
Interquartile Range and Quartile
Deviation
 Interquartile range:
 Semi-quartile Range/Quartile Deviation:
 Coefficient of Quartile Deviation:

Exercise: Ungrouped Data
 Calculate Range, Coefficient of range, Inter Quartile Range,
Semi Quartile Range, Coefficient of Quartile Deviation of the
following data:
 5, 9, 16, 17, 18
 The range of the values -2, -10, -15, 0, 8, 12 is
 If =30 and =15, the coefficient of quartile deviation is
 The value of is 35 and inter quartile range is 24, then the value of is
Exercise: Grouped Data
Variance(): Ungrouped Data
 Variance is the expected value of the squared variation of a

random variable from its mean value.
 Variance estimates how far a set of numbers are spread out from
their mean value.
 The more the value of variance, the data is more scattered from
its mean and if the value of variance is low or minimum, then it is
less scattered from mean.
 Therefore, it is called a measure of spread of data from mean
Formula:
Standard Deviation: Ungrouped
Data
(1) Actual Mean Method
 The standard deviation is a popular measure of variability.
 It is square root of variance.
Formula is given below:

Example
 Compute variance for the following set of data:
5, 9, 16, 17, 18
Exercise:
Deviations from Assumed Mean
Formula: , and where
Exercise:
Variance: Without taking
deviations
Formula is: and S.D.
Exercise: Compute SD for following set of data.

Variance and Standard Deviation:
Grouped Data
 Variance:
 Standard Deviation:
Example:(1) Actual Mean Method
Example:(1) Actual Mean Method
(2)Assumed Mean Method: Grouped Data
Formula is: where

Exercise: (2) Assumed Mean
Method
(3) Without taking deviations
Formula is: Formula is: and S.D.
Exercise: (3) Without taking
deviations
Exercise: Calculate S.D. with Assumed
Mean method and without taking deviations
Coefficient of Variation
Definition: This is relative measure of variation. This

is used when we have to compare the variability of
given two or more series.
Formula to calculate coefficient of variation is:

Exercise
 The prices of a Tea company in Mumbai and Delhi markets during last 10
months are recorded below:
 Determine the arithmetic mean and Standard Deviation of the prices of

shares. In which market the share prices are stable.
Calculate the Coefficient of
Variation of the following data:
Example:
 Calculate the coefficient of variation of previous two examples and
compare the variability of both.(Exercise)
 Ex.
Measures of Shape
 Measures of shape describe the distribution (or pattern) of the
data within a dataset.
Skewne
ss
Kurtosis
Skewness
 Symmetrical distribution: Symmetric distribution is a

type of distribution where the left side of the distribution mirrors
the right side.
Cont...
 Skewness is a measure of the asymmetry of a distribution.
 A distribution is asymmetrical when its left and right side are not
mirror images.
 A distribution can have right (or positive), left (or negative), or
zero skewness.
Skewness and Mean, Median,
Mode
Coefficient of Skewness
 Determines the degree of skewness
Calculates as:
Coefficient of Skewness
Interpretations
 If the coefficient of skewness is positive then the distribution is
skewed to the right.
 If the coefficient of skewness is negative and the distribution will

be skewed to the left.
 If the value of the mean, median, and mode are equal then the
distribution is a normal distribution and the coefficient of
skewness will be 0.
Kurtosis
 Kurtosis is a statistical measure used to describe the degree to

which scores cluster in the tails or the peak of a normal
frequency distribution.
 The peak is the tallest part of the distribution, and the tails are
the ends of the distribution.
 There are three types of kurtosis:

• mesokurtic
• leptokurtic
• platykurtic
Types of Kurtosis(Exercise)
 Mesokurtic: Distributions that are moderate in breadth and

curves with a medium peaked height
 Leptokurtic: More values in the distribution tails and more

values close to the mean, i.e., sharply peaked with heavy tails
 Platykurtic: Fewer values in the tails and fewer values close

to the mean, i.e., the curve has a flat peak and has more
dispersed scores with lighter tails
Graphically(Exercise)
Importance of Standard
Deviation
 There are two ways to apply standard deviation to data
• Empirical rule
• Chebyshev’s theorem.
 Assume the data is normally distributed.
Empirical rule: The empirical rule is an important rule of thumb

that is used to state the approximate percentage of
values that lie within a given number of standard
deviations from the mean of a set of data if
the data are normally
distributed.
Empirical Rule
Graphically

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Measures of

 Measures of central tendency gives information about the middle

 Thus, researchers can use another group of analytic tools,

 It is a single numerical value

 Semi-quartile Range/Quartile Deviation:

 Coefficient of Quartile Deviation:

 If =30 and =15, the coefficient of quartile deviation is

 Variance is the expected value of the squared variation of a

Formula is given below:

Exercise: Compute SD for following set of data.

Formula is: where

Definition: This is relative measure of variation. This

Formula to calculate coefficient of variation is:

 Determine the arithmetic mean and Standard Deviation of the prices of

 Symmetrical distribution: Symmetric distribution is a

 Determines the degree of skewness

 If the coefficient of skewness is negative and the distribution will

 Kurtosis is a statistical measure used to describe the degree to

 There are three types of kurtosis:

 Mesokurtic: Distributions that are moderate in breadth and

 Leptokurtic: More values in the distribution tails and more

 Platykurtic: Fewer values in the tails and fewer values close

Empirical rule: The empirical rule is an important rule of thumb

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