LECTURE 5 Flashcards
What is dispersion?
The spread or variation of data points around a central value.
What is the purpose of dispersion?
To measure the variability of data and provide a complete picture beyond averages.
What are the characteristics of a good measure of dispersion?
- Rigidly defined 2. Based on all observations 3. Not affected by extreme values 4. Allows algebraic manipulation 5. Simple to calculate and understand.
What is the range?
The difference between the largest and smallest values in a dataset.
What is the formula for range?
Range = L - S, where L is the largest value and S is the smallest value.
What is the range for continuous data using Method 1?
L = Upper boundary of the highest class, S = Lower boundary of the lowest class.
What is the range for continuous data using Method 2?
L = Midpoint of the highest class, S = Midpoint of the lowest class.
What are the merits of range?
- Simple to calculate 2. Easy to understand 3. Useful in quality control, weather forecasts, and stock analysis.
What are the demerits of range?
- Affected by extreme values 2. Based on only two observations 3. Not suitable for open-end intervals 4. Rarely used as a standalone measure.
What is standard deviation (SD)?
The positive square root of the arithmetic mean of squared deviations from the mean.
What is the formula for standard deviation for raw data?
s = √[Σ(x - x̄)² / n].
What is the formula for standard deviation for grouped data (discrete)?
s = √[Σf(x - x̄)² / n].
What is the formula for standard deviation for grouped data (continuous)?
s = √[Σf(d²) / n - (Σf(d) / n)²], where d = x - A.
What are the merits of standard deviation?
- Rigidly defined 2. Uses all observations 3. Suitable for mathematical analysis 4. Less affected by sampling fluctuations.
What are the demerits of standard deviation?
- Difficult to compute 2. Gives more weight to extreme values 3. Cannot be used for direct comparisons.