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Chapter 04 - Measures of Dispersion (Part 1)

This document discusses measures of dispersion used to describe how spread out or varied values in a data set are. It defines range as the difference between the highest and lowest values. Inter-quartile range is defined as the difference between the third and first quartiles, making it less sensitive to outliers. It provides examples of calculating range and inter-quartile range.

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BS Accoutancy St. Simon
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42 views

Chapter 04 - Measures of Dispersion (Part 1)

This document discusses measures of dispersion used to describe how spread out or varied values in a data set are. It defines range as the difference between the highest and lowest values. Inter-quartile range is defined as the difference between the third and first quartiles, making it less sensitive to outliers. It provides examples of calculating range and inter-quartile range.

Uploaded by

BS Accoutancy St. Simon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MEASURES OF DISPERSION (PART 1) CHAPTER 4

CHAPTER OUTLINE
▪Measures of Dispersion Concepts
▪Range
▪Inter-quartile Range
▪Variance
▪Standard Deviation
MEASURES OF DISPERSION CONCEPTS
Illustration:
Two groups of ten students each are given identical quizzes. Their
scores are as follows.
Group A: 67 68 69 70 72 72 74 75 76 77
Group B: 42 49 59 72 72 72 77 85 93 100
a. What can we say about the mean, median and mode of the 2
groups?
b. What can we say about the distribution of the scores?
MEASURES OF DISPERSION
▪These are statistical measures that summarize the amount of
spread or variation in the distribution of values in a variable.
▪It describes how values are spread within the distribution.
▪It also describes how similar a set of scores are to each other.
MEASURES OF DISPERSION
▪The more similar the scores are to each other, the lower the
measure of dispersion will be.
▪The less similar the scores are to each other, the higher the
measure of dispersion will be.
▪In general, the more spread out a distribution is, the larger
the measure of dispersion will be.
THE RANGE
▪It is the difference between the largest and smallest
number in a set of observations.
▪It considers only the extreme values and says nothing
about the dispersion of numbers in between.
▪It is used mostly for quick and easy indication of
variability.
▪It can be used with ordinal or interval-ratio variables.
THE RANGE
Formula:
Ungrouped Data:
𝑅𝑎𝑛𝑔𝑒=𝐻𝑖𝑔ℎ𝑒𝑠𝑡 𝑆𝑐𝑜𝑟𝑒−𝐿𝑜𝑤𝑒𝑠𝑡 𝑆𝑐𝑜𝑟𝑒
Grouped Data:
𝑅𝑎𝑛𝑔𝑒=𝐻𝑖𝑔ℎ𝑒𝑠𝑡 𝐶𝑙𝑎𝑠𝑠 𝑀𝑎𝑟𝑘−𝐿𝑜𝑤𝑒𝑠𝑡 𝐶𝑙𝑎𝑠𝑠 𝑀𝑎𝑟𝑘
THE RANGE
▪The range can used when you are presenting your results
to people with little or no knowledge of statistics.
▪The range is rarely used in scientific work as it is fairly
insensitive.
▪Two different sets of data may have same range:
1, 1, 1, 1, 9 vs 1, 3, 5, 7, 9
THE RANGE (EXAMPLE)
What is the range of the following data?
4, 8, 1, 6, 6, 2, 9, 3, 6, 9
INTER-QUARTILE RANGE (IQR)
▪It is defined as the difference of the first and third
quartiles of a data set.
▪It is a measure where the “middle fifty” lies in the data
set.
▪Therefore, because it uses the middle 50%, it is not
affected by outliers or extreme values.
INTER-QUARTILE RANGE (IQR)
INTER-QUARTILE RANGE (IQR)
Formula:
Ungrouped /Grouped Data:

𝐼𝑄𝑅 = 𝑄3 − 𝑄1
IQR (EXAMPLE)
Find the IQR for the following data set:
3, 5, 7, 8, 9, 11, 15, 16, 20, 21
IQR (SOLUTION)
EXERCISE
A department store collects data on sales made by
each of its salespeople. The number of sales made
on a given day by each of the 12 salespeople, are
as follows:
14, 16, 17, 16, 24, 21, 22, 18, 19, 18, 20, 17
Find the range and the IQR.

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