CHAPTER # 05 MEASURES OF DISPERSION, MOMENTS AND SKEWNESS A quantity that measures how the data are dispersed about the average is called measures of dispersion. Range (R) The range is a simplest measure of dispersion. “It is defined as the difference b/w the largest and smallest observation in a set of data.” It is denoted by “R”. This is an absolute measure of dispersion. For Ungrouped Data Range = R = X m X o Where X m = the largest value. X o = the smallest value. For Grouped Data Range = R = Upper class boundary of the highest class – lower class boundary of the lowest class Or Range = R = Class Marks (X) of the highest class – Class Marks of the lowest class Semi Inter Quartile Range or Quartile Deviation The semi inter-quartile range or quartile deviation is defined as half of the difference b/w the third and the first quartiles. Symbolically it is given by the S.I.Q.R = Q.D = Where Q3 Q1 2 Q1 = First, Lower quartile Q3 = Third, Upper quartile This is an absolute measure of dispersion. Mean Deviation or Average Deviation The mean deviation is defined as the average of the deviation of the values from an average (Mean, Median), the deviation are taken without considering algebraic signs. 1. Mean Deviation From Mean For Ungrouped Data M.D = X X n Or ________________________________________________________________________________________________ Hashim (0345-4755472) E-mail: hashim_farooqi@hotmail.com Url: http://www.pakchoicez.com Page 1 of 12- M.D = X Mean n For Grouped Data M.D = f X X f Or M.D = 2. f X Mean f Mean Deviation From Median For Ungrouped Data M.D = X X n Or M.D = X Median n For Grouped Data M.D = f X X f Or M.D = f X Median f Standard Deviation (S) The standard deviation is defined as the positive square root of the mean of the squared deviation of the values from their mean. Thus the standard deviation of a set of n values X1. X 2 . X 3 .......... X n .it is denoted by ‘S’. This is an absolute measure of dispersion. Methods of Standard Deviation I.Direct Method II.Short Cut Method III.Coding Method or Step-Deviation Method 1. Direct Method For Ungrouped Data ________________________________________________________________________________________________ Hashim (0345-4755472) E-mail: hashim_farooqi@hotmail.com Url: http://www.pakchoicez.com Page 2 of 12- S.D = S = X S.D = S = X X 2 n X n 2 2 n For Grouped Data S.D = S = fX f fX f S.D = S = f X X f 2 2 2 2. Short Cut Method For Ungrouped Data D S.D = S = D n 2 n 2 Where D= X – A For Grouped Data S.D = S = fD f 2 fD f 2 3. Coding Method or Step-Deviation Method For Ungrouped Data S.D = S = h u 2 n u n 2 Where u X A D or h h For Grouped Data S.D = S = h fu f 2 fu f 2 Combined Standard Deviation ( S c ) For two set of values ________________________________________________________________________________________________ Hashim (0345-4755472) E-mail: hashim_farooqi@hotmail.com Url: http://www.pakchoicez.com Page 3 of 12- Sc = 2 n1S12 n2 S22 n1n2 X X2 2 1 n1 n2 n1 n2 For three or more sets of data Sc = ni Si2 X i X ni 2 Variance ( S 2 ) 2 The variance is defined as the mean of the squared deviation from mean. It is denoted by ‘ S ’ Or 2 The square of the standard c=deviation is called variance. It is denoted by ‘ S ’ Methods of Standard Deviation 1. Direct Method 2. Short Cut Method 3. Coding Method or Step-Deviation Method 1. Direct Method For Ungrouped Data Var(X) = S 2 Var(X) = S 2 = X = X X 2 n X n 2 2 n For Grouped Data Var(X) = S 2 Var(X) = S 2 = fX f = f X X f 2 fX f 2 2 2. Short Cut Method For Ungrouped Data Var(X) = S 2 = D n 2 D n 2 Where D= X – A For Grouped Data ________________________________________________________________________________________________ Hashim (0345-4755472) E-mail: hashim_farooqi@hotmail.com Url: http://www.pakchoicez.com Page 4 of 12- Var(X) = S 2 = fD f 2 fD f 2 3. Coding Method or Step-Deviation Method For Ungrouped Data u 2 u 2 Var(X) = S = h n n 2 2 Where u X A D or h h For Grouped Data 2 fu 2 fu 2 2 Var(X) = S = h f f 2 Combined Variance ( S c ) For two set of values Sc 2 2 n1S12 n2 S22 n1n2 = X X2 2 1 n1 n2 n1 n2 For three or more sets of data n S i Sc 2 = 2 i X X 2 i n i Relative Measure of Dispersion 1. Coefficient Of Range Coefficient of Range = 2. Xm Xo Xm Xo Coefficient Of Quartile Deviation Coefficient of Q.D = Where Q3 Q1 Q3 Q1 Q1 = First, Lower quartile Q3 = Third, Upper quartile 3. Coefficient Of Mean Deviation From Mean ________________________________________________________________________________________________ Hashim (0345-4755472) E-mail: hashim_farooqi@hotmail.com Url: http://www.pakchoicez.com Page 5 of 12- Coefficient of M.D from Mean = Mean Deviation From Mean Mean Or Coefficient of M.D from Mean = 4. M .D From X X Coefficient Of Mean Deviation From Median Coefficient of M.D from Median = Mean Deviation From Median Median Or Coefficient of M.D from Mean = 5. Coefficient Of Standard Deviation Coefficient of S.D = 6. S .D X Coefficient Of Variation (C.V) “The coefficient of variation expresses the standard deviation as a percentage in terms of arithmetic mean”. It is used as a criterion of consistent performance, the smaller coefficient of variation, and the more consistent in the performance. Or “Coefficient of variation is used to compare the variability of two or more than two series”. Coefficient of Variation = C.V = M .D From X X S .D 100 X Relationship Between Measures of Dispersion 1. For Normal Distribution I. Mean Deviation = M.D = 0.7979 S.D II. Quartile Deviation = Q.D = 0.6745 S.D 2. For Moderately Skewed Distribution I. Mean Deviation = M.D = 3 S.D 4 II. Quartile Deviation = Q.D = 2 S.D 3 ________________________________________________________________________________________________ Hashim (0345-4755472) E-mail: hashim_farooqi@hotmail.com Url: http://www.pakchoicez.com Page 6 of 12- III. Quartile Deviation = Q.D = 5 M.D 6 Moments A moment designates the power to which deviation are raised before averaging them. Methods of Standard Deviation 1. Moments about Mean or Central Moments 2. Moments about Origin or Zero 3. Moments about Provisional Mean or Arbitrary Value (Non Central Moment) 1. Moments about Mean or Central Moments For Ungrouped Data 1 m1 x x 0 n 2 m2 x x 3 m3 x x 4 m4 x x 2 Variance n For Grouped Data 3 n 4 n 1 m1 f x x 0 f 2 m2 f x x f 3 m3 f x x f 4 m4 f x x f 2 Variance 3 4 2. Moments about Origin or Zero For Ungrouped Data '1 m'1 x n ________________________________________________________________________________________________ Hashim (0345-4755472) E-mail: hashim_farooqi@hotmail.com Url: http://www.pakchoicez.com Page 7 of 12- 2 m2 x 3 m3 x 4 m4 x ' ' ' ' ' ' 2 n 3 n 4 n For Grouped Data '1 m'1 fx ' 2 m' 2 fx 2 f f 3 m3 ' ' fx f ' 4 m' 4 3 fx 4 f 3. Moments about Provisional Mean or Arbitrary Value (Non Central Moment) 4. Methods of Standard Deviation i. Direct Method ii. Short Cut Method iii. Coding Method or Step-Deviation Method i.Direct Method For Ungrouped Data '1 m'1 x A Where A is constant n 2 m2 x A 3 m3 x A 4 m4 x A ' ' ' ' ' ' 2 n 3 n 4 n For Grouped Data ________________________________________________________________________________________________ Hashim (0345-4755472) E-mail: hashim_farooqi@hotmail.com Url: http://www.pakchoicez.com Page 8 of 12- '1 m'1 f x A Where A is constant f 2 m2 f x A f 3 m3 f x A f 4 m4 f x A f ' ' ' ' ' ' 2 3 4 ii.Short Cut Method For Ungrouped Data '1 m'1 D Where D= X - A n '2 m'2 D2 n 3 m3 ' ' D 3 n '4 m'4 D4 n For Grouped Data '1 m'1 fD Where D= X - A f 2 m2 ' ' fD f '3 m '3 2 fD3 f 4 m4 ' ' fD f 4 iii.Coding Method or Step Deviation Method For Ungrouped Data ________________________________________________________________________________________________ Hashim (0345-4755472) E-mail: hashim_farooqi@hotmail.com Url: http://www.pakchoicez.com Page 9 of 12- '1 m'1 h u n 2 m2 ' ' u 4 m4 ' u3 u X A D or h h Where u X A D or h h h2 n ' u 2 n '3 m '3 Where h3 4 h4 n For Grouped Data '1 m'1 fu f 2 m2 ' ' h fu f '3 m'3 2 h2 fu 3 f 4 m4 ' ' fu f h3 4 h4 Relation Between Central moments in Terms of Non Central Moments 1 m1 '1 1' 0 2 m2 '2 1' Varaince 2 3 m3 '3 31' 2' 2 1' 3 4 m4 '4 41' 3' 6 1' 2' 3 1' 2 4 Moments – Ration 3 2 1 b1 3 2 2 b2 42 2 ________________________________________________________________________________________________ Hashim (0345-4755472) E-mail: hashim_farooqi@hotmail.com Url: http://www.pakchoicez.com Page 10 of 12- Sheppard’s Correction for Moments of Group Data h2 2 (corrected ) 2 (uncorrected ) 12 3 (corrected ) 3 Charliers Check i. f u 1 fu f ii. f u 1 fu 2 2 fu f iii. f u 1 fu 3 3 fu 2 3 f u f iv. h2 7 4 4 (corrected ) 4 (uncorrected ) 2 (uncorrected ) h 2 240 2 3 f u 1 fu 4 4 4 fu 3 6 f u 2 4 f u f Symmetry In a symmetrical distribution a deviation below the mean exactly equals the corresponding deviation above the mean. It is called symmetry. For symmetrical distribution the following relations hold. Mean = Median = Mode Q3 - Median = Median - Q1 u3 m3 0 1 b1 0 Skewness Skewness is the lack of symmetry in a distribution around some central value i.e. means Median or Mode. It is the degree of asymmetry. Mean Median Mode Q3 - Median Median - Q1 u3 m3 0 1 b1 0 There are two types of Skewness. ________________________________________________________________________________________________ Hashim (0345-4755472) E-mail: hashim_farooqi@hotmail.com Url: http://www.pakchoicez.com Page 11 of 12- 1. Positive Skewness If the frequency curve has a longer tail to right, the distribution is said to be positively skewed. 2. Negative Skewness If the frequency curve has a longer tail to left, the distribution is said to negatively skewed. Coefficient of Skewness (SK) Karl Pearson’s Coefficient of Skewness SK = Mean Mode S .D SK = 3 Mean Median S .D Bowly’s Quartile Coefficient of Skewness SK = Q3 Q1 2Median Q3 Q1 Moment Coefficient of Skewness SK = Kurtosis Moment coefficient 2 1 2 3 2 5 2 61 9 is an important measure of kurtosis. These measures define as: 2 b2 The moment coefficient 2 4 2 2 is a pure numbers and independent of the origin and unit of measurement. If If If 2 3 2 3 2 3 distribution is Leptokurtic distribution is Normal or Mesokurtic distribution is Platy Kurtic Or K Q.D For Normal distribution, K = 0.263 P90 P10 ________________________________________________________________________________________________ Hashim (0345-4755472) E-mail: hashim_farooqi@hotmail.com Url: http://www.pakchoicez.com Page 12 of 12-