Measures of Dispersion in Business Flashcards
measures of variability
which are statistical procedures to describe how spread out the data
Range
Standard Deviation
Variance
Range
defined as a single number representing the spread of the data
Standard deviation
defined as a number representing how far from the average each score is
the measure of how closely all of the data in the data set surrounds the mean
helps to identify a normal distribution of data by comparing the distance of the average of each data point’s variance to the mean.
Variance
defined as a number indicating how spread out the data is
seeks to find the parameter
direct measure of data variability
calculated as the average of the squared differences of all individual data points from the datasets mean value
population
defined as the complete collection to be studied, like all the police officers in your city
the larger group that the sample
sample
defined as a section of the population and would be a selection of police officers you are studying
a group to study
VAR.P
Variance in a Population
VAR.S
Variance in a Sample
normal distribution of data
represented when the majority of the data is found close to the average of the set.
continuous distribution
it is never a fixed value.
normally distributed
verified to represent the population that is being studied.
the data tends towards a middle value with equal amounts to the left and right.
outliers
extreme values
A bell curve plot
a visual representation that the data is normally distributed.
Chebyshev’s inequality
also known as Chebyshev’s theorem, is a statistical tool that measures dispersion in a data population
z-score
is a measure of distance from the mean in terms of how many standard deviations it is removed from the mean.
a measurement of how far away a point is from the mean in terms of standard deviations