Uint-2

Measures of Dispersion
Definitions
 Some important definitions of dispersion are given below:

1. “ Dispersion is the measure of the variation of the items" .

- A.L. Bowley

2. “ The degree to which numerical data tend to spread about an average value is
called the variation of dispersion of the data”.
- Spiegel

3. “ Dispersion or spread is the degree of the scatter or variation of the variable about a
central value” . - Brooks & Dick

4. “ The measurement of the scatterness of the mass of figures in a series about an

average is called measure of variation or dispersion” .
- Simpson & Kajka

1
  It is clear from above that dispersion (also known as scatter, spread or
variation) measures the extent to which the items vary from some central value.
Since measures of dispersion give an average of the differences of various items
from an average, they are also called averages of the second order.

The two curves in diagram

(a) represent two distributions with the same mean X. but with different
dispersions.
(b) represent two distributions with the same dispersion but with unequal means x̄1
and x̄2.
(c) represents two distributions with unequal dispersion.

2
Significance of Measuring Variation

 Measures of variation are needed for four basic purposes:

1. To Determine the Reliability of an Average.

2. To Serve as a Basis for the Control of the Variability
3. To Compare Two or More Series with Regard to their Variability
4. To Facilitate the Use of Other Statistical Measures.

Properties of a good Measure of Variation

A good measure of dispersion should possess, as far as possible, following

properties":

(i) It should be simple to understand.

(ii) It should be easy to compute.
(iii) It should be rigidly defined.
(iv) It should be based on each and every item of the distribution.
(v) It should be amenable to further algebraic treatment.
(vi) It should have sampling stability.
(vii) It should not be unduly affected by extreme items.

3
Methods of Studying Variation

The following are the important methods of studying variation:

1. The Range.
2. The Interquartile Range and the Quartile Deviation.
3. The Mean Deviation or Average Deviation.
4. The Standard Deviation, and
5. The Lorenz Curve.

4
Of these the first two namely, the range and quartile deviations, are positional
measure because they depend on the values at a particular position in the
distribution.
The other two, the average deviation and the standard deviation called calculation
measure of deviation because all of the values are employed in their calculation
and the last one is a graphic method.

Absolute and Relative Measures of Variation

 Measures of dispersion may be either absolute or relative.
 Absolute measures of dispersion are expressed in the same statistical unit
in which the original data are given such as rupees, kilograms, tonnes, etc.
These values may be used to compare the variations in two distributions
provided the variables are expressed in the same units and of the same
average size.
 A measure of relative dispersion is the ratio of a measure of absolute
dispersion to an appropriate average. It is sometimes called a coefficient of
dispersion, because "coefficient" means a pure number that is independent
of unit of measurement. This means that the arithmetic man should be used
with the standard deviation, and either the arithmetic mean or median with
the mean deviation.

5
 1. Range

 Range is the simplest method of studying dispersion.

 It is defined as the difference between the method of smallest item and the
value of the largest item included in the distribution.

 Symbolically.
Range = L-S
Where, L= Largest item, and
S=Smallest item.

 The relative measure corresponding to range, called the coefficient of

range is obtained by applying the following formula:

𝐋−𝐒
Coefficient of Range =
𝐋+𝐒

 If the averages of the two distributions are about the same, a comparison the
range indicates that the distribution with the smaller range has less
dispersion and the averages of that the distribution is more typical of the
group.
(or)

6
Merits and Limitations

Merits:

* Amongst all the methods of studying dispersion range is the simplest to

understand and the easiest to compute.

* It takes minimum time to calculate the value of range. Hence, if one is interested
in getting a quick rather than a very accurate picture of variability one may
compute range.

Limitations.

* Range is not based on each and every item of the distribution.

* It is subject to fluctuations of considerable magnitude from sample to sample.
* Range cannot tell us anything about the character of the distribution within the
two extreme observations. For example, observe the three series:

Series A 46 6 46 46 46
Series B 6 10 6 46 46
Series C 6 6 15 25 30

* Range cannot be computed in case of open-end distributions.

7
Uses (Applications)

 Quality Control
 Fluctuations in the Share Prices
 Weather Forecasts
 Everyday Life

8
Example: 1.1.1 (Type–1- Individual Series)

Answer:
∴ Range= 50
∴ Coefficient of Range = 0.556

9
Example: 1.2.1 (Type–2 - Discrete Series)

Answer:
∴ Range= 10
∴ Coefficient of Range = 0.5

10
Example: 1.2-2 (Type–2 - Discrete Series)
The following are the prices of shares of XYZ Co Ltd. from
Monday to Saturday:

Day Price(Rs) Day Price(Rs)

Monday 200 Thursday 160
Tuesday 210 Friday 220
Wednesday 208 Saturday 250
Calculate range and its coefficient.
Solution.
Range = L-S
Here,
L = 250 and S = 160
Range =250-160
= 90
= Rs. 90

𝐋−𝐒
Coefficient of Range =
𝐋+𝐒

𝟐𝟓𝟎−𝟏𝟔𝟎
Coefficient of Range =
𝟐𝟓𝟎+𝟏𝟔𝟎

90
=
410

= 0.22

Answer:
∴ Range= 90
∴ Coefficient of Range = 0.22
11
Example: 1.3.1 (Type–3 – Continuous Series)

Answer:
∴ Range= 50
∴ Coefficient of Range = 0.417

12
Example: 1.3.2 (Type–3 – Continuous Series)

Calculate Coefficient of Range from the following data

Marks No, of students Marks No, of students

10-20 8 40-50 8
20-30 10 50-60 4
30-40 12

Solution:
Range = L - S
Here,
L = 60 and S = 10
Range = 60 – 10
= 50

𝐋−𝐒
Coefficient of Range =
𝐋+𝐒

𝟔𝟎−𝟏𝟎
Coefficient of Range =
𝟔𝟎+𝟏𝟎

𝟓𝟎
Coefficient of Range =
𝟕𝟎

= 0.714

Answer:
∴ Range= 50
∴ Coefficient of Range = 0.714

13
 2. The Interquartile Range or the Quartile Deviation

 The range as a measure of dispersion discussed above has certain

limitations. It is based on two extreme items and it fails to take account of
the scatter within the range. From this there is reason to believe that if the
dispersion of the extreme items is discarded, the limited range thus
established might be more instructive.
 For this purpose there has been developed a measure called the
interquartile range, the range which includes the middle 50 per cent of the
distribution. That is, one quarter of the observations at the lower end,
another quarter of the observations at the upper end of the distribution are
excluded in computing the interquartile range.
 In other words, interquartile range represents the difference between the
third quartile and the first quartile.

 Symbolically,

Interquartile range = Q3 - Q1

 Very often the interquartile range is reduced to the form of the Semi-
interquartile range or quartile deviation by dividing it by 2.

 Symbolically,

𝐐𝟑 − 𝐐𝟏
Quartile Deviation or Q.D.=
𝟐

14
  Quartile deviation is an absolute measure of dispersion. The relative
measure corresponding to this measure, called the coefficient of quartile
deviation, is calculated as follows.

(𝐐𝟑 − 𝐐𝟏)/𝟐
Coefficient of Q.D. =
(𝐐𝟑 + 𝐐𝟏)/𝟐
(𝐐𝟑 − 𝐐𝟏)
=
(𝐐𝟑 + 𝐐𝟏)

Coefficient of quartile deviation can be used to compare the degree variation in

different distributions.

15
16
17
Merits and Limitations

Merits: In certain respects it is superior to range as a measure of dispersion.

 It has a special utility in measuring variation in case of open distributions or

one in which the data may be ranked but me quantitatively.

 It is also useful in erratic or badly skewed distributions, where other

measures of dispersion would be warped by extreme values. The quartile
deviation is not affected by the presence of extreme values.

Limitations:
Quartile deviation ignores 50% items. i.e.. the first 25% and the last 25%. As the
value of quartile deviation does not depend upon every item of the series, it cannot
be regarded as a good method measuring dispersion.

 It is not capable of mathematical manipulation.

 Its value is very much affected by sampling fluctuations.

 It is in fact not a measure of dispersion as it really does not show the scatter
around an average but rather a distance on a scale. i.e., quartile deviation is
not itself measured from an average, but it is a positional average.

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Example: 2.1.1 (Type-1-Individual Series)

19
Answer:
∴ Quartile Deviation or Q.D = 7.5
∴ Coefficient of QD = 0.333

20
Example: 2.1.2 (Type-1-Individual Series)
Find out the value of quartile deviation and its coefficient from the following data:

Roll No. 1 2 3 4 5 6 7
Marks 20 28 40 12 30 15 50

Solution.

Marks arranged in ascending order:

12 15 20 28 30 40 50

𝐐𝟑 − 𝐐𝟏
Quartile Deviation or Q.D.=
𝟐

𝐍+𝟏
Q1= Size of ( )
𝟒
𝟕+𝟏
= Size of ( )
𝟒
= 2nd Item
Size of 2nd Item is 15. Thus Q1=15

21
 𝐍+𝟏
Q3= Size of 3( )
𝟒
𝟕+𝟏
= Size of 3( )
𝟒

= Size of 3( 2 )
= 6th Item
Size of 6th Item is 40. Thus Q3=40

𝐐𝟑 − 𝐐𝟏
Quartile Deviation or Q.D=
𝟐
𝟒𝟎 − 𝟏𝟓
=
𝟐
𝟐𝟓
=
𝟐
Quartile Deviation or G.D = 12.5

(𝐐𝟑 − 𝐐𝟏)
Coefficient of QD =
(𝐐𝟑 + 𝐐𝟏)

(𝟒𝟎−𝟏𝟓)
=
(𝟒𝟎+𝟏𝟓)

(𝟐𝟓)
=
(𝟓𝟓)

Coefficient of QD = 0.455

Answer:
∴ Quartile Deviation or Q.D = 12.5
∴ Coefficient of QD = 0.455 22
23
Example: 2.2.1 (Type-2-Discrete Series)

Find out the value of quartile deviation and its coefficient from the following data:

Solution:

24
25
 (𝐐𝟑 − 𝐐𝟏)
Coefficient of QD =
(𝐐𝟑 + 𝐐𝟏)

(𝟐𝟔−𝟏𝟒)
=
(𝟐𝟔+𝟏𝟒)

(𝟏𝟐)
=
(𝟒𝟎)

Coefficient of QD = 0.3

Answer:
∴ Quartile Deviation or Q.D = 6
∴ Coefficient of QD = 0.3

26
Example: 2.2.2 (Type-2-Discrete Series)

Find out the value of quartile deviation and its coefficient from the following data:

Marks 10 20 30 40 50 60
[Link] 4 7 15 8 7 2

Solution:
Calculation of coefficient of quartile deviation

Marks [Link] C.f

(Frequency)
10 4 4
20 7 11
30 15 26
40 8 34
50 7 41
60 2 43
N=∑f=43

Solution.

𝐐𝟑 − 𝐐𝟏
Quartile Deviation or Q.D.=
𝟐

27
 𝐍+𝟏
Q1= Size of ( )
𝟒
43+1
= Size of ( )
4
44
= Size of ( )
4
= 11th Item
Size of 11th Item is 20. Thus Q1=20

N+1
Q3= Size of 3( )
4
43+1
= Size of 3( )
4
44
= Size of 3 ( )
4

= Size of 3 (11)
= 33rd Item
Size of 33rd Item is 40. Thus Q3=40

𝐐𝟑 − 𝐐𝟏
Quartile Deviation or Q.D=
𝟐
40 − 20
=
2
20
=
2
Quartile Deviation or G.D = 10

28
 (𝐐𝟑 − 𝐐𝟏)
Coefficient of QD =
(𝐐𝟑 + 𝐐𝟏)

(40−20)
=
(40+20)

(20)
=
(60)

Coefficient of QD = 0.333

Answer:
∴ Quartile Deviation or Q.D = 10
∴ Coefficient of QD = 0.333

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(Type-3- Continuous Series)

(or)

𝐍
−𝐜𝐟
𝟒
Q1= L + ( )*i
𝒇
𝟑𝐍
−𝐜𝐟
𝟒
Q3= L + ( )*i
𝒇

30
 Example: 2.3.1 (Type-3- Continuous Series)

Calculate quartile deviation and the coefficient of quartile deviation from the
following data:

Wages in Rupees less than 35 35-37 38-40 41-43 over 43

per hour
Number of wage 14 62 99 18 7
earners

Solution:

Wages f c.f
( Rupees per hour)
less than 35 14 14
35-37 62 76
38-40 99 175
41-43 18 193
over 43 7 200

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 𝐐𝟑 − 𝐐𝟏
Quartile Deviation or Q.D=
𝟐

𝐍 th
Q1= Size of ( ) Item
𝟒
200
= Size of ( )
4
= 50th Item
Q1 lies in the class 35-37.
𝐍
−𝐜𝐟
𝟒
Q1= L + ( )*i
𝒇
N
L=35, = 50, cf = 14, f = 62, i=2
4
50− 14
Q1= 35 + ( )*2
62
36
= 35 + ( )*2
62
= 35 + (0.58) *2
= 35 + 1.16
∴ Q1 = 36.16

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 𝐍 th
Q3= Size of 3 ( ) Item
𝟒
200
= Size of 3 ( )
4
= 150th Item
Q3 lies in the class 38-40.
𝟑𝐍
−𝐜𝐟
𝟒
Q3= L + ( )*i
𝒇
3N
L=38, = 150, cf = 76, f = 99, i=2
4
150− 76
Q3= 38 + ( )*2
99
74
= 38 + ( )*2
99
= 38 + (0.74) *2
= 38 + 1.49
∴ Q3 = 39.49

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 𝐐𝟑 − 𝐐𝟏
Quartile Deviation or Q.D=
𝟐
𝟑𝟗.𝟒𝟗 − 𝟑𝟔.𝟏𝟔
=
𝟐
𝟑.𝟑𝟑
=
𝟐
∴ Quartile Deviation or G.D= 1.67

𝟑𝟗.𝟒𝟗 − 𝟑𝟔.𝟏𝟔
Coefficient of QD =
𝟑𝟗.𝟒𝟗+ 𝟑𝟔.𝟏𝟔

𝟑.𝟑𝟑
Coefficient of QD =
𝟕𝟓.𝟔𝟓
∴ Coefficient of QD = 0.044

Answer:
∴ Quartile Deviation or Q.D= 1.67
∴ Coefficient of QD = 0.044

34
Example: 2.3.2 (Type-3- Continuous Series)

35
Answer:
∴ Quartile Deviation or Q.D= 10.625
∴ Coefficient of QD = 0.2982

36
 3. The Mean Deviation

 The mean deviation is also known as the average deviation.

 It measures how the values in each set of observation differ from either
mean or median.

 It is the average difference between the items in a distribution and the

median or mean of that series.
 Theoretically there is an advantage in taking the deviations from median
because the sum of deviations of items from median is minimum when
signs are ignored.
 However, in practice, the arithmetic mean is more frequently used in
calculating the value of average deviation and this is the reason why it is
more commonly called mean deviation.

37
Mean and Median
 Mean is the average value of set of given data and median is the middle
value when the data set is arranged in an order either ascending or
descending.

Example: Find the mean and median for the following data:

3, 5, 4, 1, 8, 6, 9

Solution:

Mean

Given Data: 3, 5, 4, 1, 8, 6, 9

No. of. data = 7

The mean for the following data is given as:

Mean = (3 +5 + 4 + 1 + 8 + 6 + 9)/7

Mean = 36/7 = 5. 14

Therefore, the mean of the following data is 5. 14

Median

To find median:

Step 1: Arrange the given set of data in ascending order

So, it becomes: 1, 3, 4, 5, 6, 8, 9

Step 2: Since the number of data is odd, take the middle value

So, the middle value of the given data is 5.

Thus, the median value is 5.

38
Computation of Mean Deviation (M.D) -(Type-1-Individual Observations):

Formula:

1
Mean Deviation (M.D) = ∑ |X - 𝑋 |
𝑁
1
= ∑ |D| (or)
𝑁
∑ |D|
=
𝑁

where |D| = |X - A| (or)

|D| = |X - 𝑋 |

A  Mean or Median
Violation ignoring plus and minus signs.

MD
Coefficient of MD =
Median

39
 Mean Deviation about Mean

Example: 3.1.1. Calculate mean Deviation about mean from the following
18, 20, 12, 14. 19, 22, 26, 16, 19, 24
Solution:
x |D| = |X - 𝑋 |
|D| = |X - 19 |
18 1
20 1
12 7
14 5
19 0
22 3
26 7
16 3
19 0
24 5
∑ X=190

∑X
𝑋 =
𝑁
∑ |D | = 32
190
𝑋 =
10

𝑋 = 19

∑ |D|
Mean Deviation (M.D) =
𝑁
32
=
10
∴ Mean Deviation (M.D) = 3.2

40
 Mean Deviation about Median

∑ |D|
Mean Deviation (M.D) =
𝑁

where |D| = |X - Median | (or)

|D| = |X - 𝑋 |

Violation ignoring plus and minus signs.

Note (Formula):
To find Median
If N=odd then
𝑁+1 th
Median = Size of ( ) Item
2

If N=Even then
𝑁 𝑁
Median =Avg ( Size of ( ) th Item + size of ( ) +1 th Item )
2 2

MD
Coefficient of MD =
Median

41
Example: 3.1.2. Calculate mean Deviation about median for the following set of
observation:
3, 9, 5, 3 , 12, 10, 18, 4, 7, 19, 21

Solution:
Arrange the data in ascending order

3, 3, 4, 5, 7, 9, 10, 12, 18, 19, 21

To find Median
If N= 11 (odd) then
𝑁+1 th
Median = Size of ( ) Item
2
11+1 th
= Size of ( ) Item
2
12 th
= Size of ( ) Item
2

= Size of 6 th Item
∴ Median =9

42
To calculate of MD about Median

x |D| = |X -Median |
|D| = |X - 9 |
3 6
3 6
4 5
5 4
7 2
9 0
10 1
12 3
18 9
19 10
21 12

∑ |D | = 58

∑ |D|
Mean Deviation (M.D) =
𝑁
58
=
11
∴ Mean Deviation (M.D) = 5.272

43
Example: 3.1.3. Calculate mean Deviation about median for the following set of
observation:
4000, 3000, 4200, 4400, 5800, 4800

Solution:
Arrange the data in ascending order
3000, 4000, 4200, 4400, 4800, 5800

To find Median

If N= 6 (Even) then
𝑁 𝑁
Median =Avg ( Size of ( ) th Item + size of ( ) +1 th Item )
2 2
6 6
=Avg ( Size of ( ) th Item + size of ( ) +1 th Item )
2 2

= Avg ( Size of 3 rd Item + size of 4 th Item )

4200+4400
=
2
8600
=
2
∴ Median = 4300

44
To calculate of MD about Median

x |D| = |X - Median|
|D| = |X - 4300 |
3000 1300
4000 300
4200 100
4400 100
4800 500
5800 1500

∑ |D | = 3800

∑ |D|
Mean Deviation (M.D) =
𝑁
3800
=
6
∴ Mean Deviation (M.D) = 633.33

45
 Example: 3.1.4. Calculate the mean deviation and its coefficient of the two income
groups of five and seven members given below:

Group :1 (Rs.) 14,000 14,800 15,200 16,000 18,000

Group :2 (Rs.) 15,500 16,000 16,200 17,000 17,500 18,800 19,000

Solution:
Group :1
Arrange the data in ascending order

14000, 14800 , 15200, 16000, 18,000

To find Median
If N= 5 (odd) then
𝑁+1 th
Median = Size of ( ) Item
2
5+1 th
= Size of ( ) Item
2

= Size of 3 rd Item
∴ Median =15200

46
To calculate of MD about Median

x |D| = |X - Median|
|D| = |X - 15200 |
14,000 1200
14,800 400
15,200 0
16,000 800
18,000 3600
∑ |D | =6000

∑ |D|
Mean Deviation (M.D) =
𝑁
6000
=
5
∴ Mean Deviation (M.D) = 1200

MD
Coefficient of MD =
Median

1200
Coefficient of MD =
15200

∴ Coefficient of MD = 0.079

47
Group: 2

Arrange the data in ascending order

15500, 16000 , 16200, 17000, 17500, 18000, 19000

To find Median
If N= 7 (odd) then
𝑁+1 th
Median = Size of ( ) Item
2
7+1 th
= Size of ( ) Item
2

= Size of 4 th Item
∴ Median =17000

48
To calculate of MD about Median

x |D| = |X - Median|
|D| = |X - 17000 |
15,500 1500
16,000 1000
16,200 800
17,000 0
17,500 500
18,000 1000
19,000 2000
∑ |D | =6800

∑ |D|
Mean Deviation (M.D) =
𝑁
6800
=
7
∴ Mean Deviation (M.D) = 971.43

MD
Coefficient of MD =
Median

971.43
Coefficient of MD =
17000

∴ Coefficient of MD = 0.057

49
Answer:

Group :1

Mean Deviation (M.D) = 1200

Coefficient of MD = 0.079

Group: 2

Mean Deviation (M.D) = 971.43

Coefficient of MD = 0.057

50
Computation of Mean Deviation (M.D) -(Type-2-Discrete Series):

Formula:
∑ f |D|
Mean Deviation (M.D) =
𝑁
Where,
| D | - denotes deviations from median ignoring signs

MD
Coefficient of MD =
Median

51
Example: 3.2.1. Calculate the mean deviation and its coefficient from the
following series:

X 10 11 12 13 14
f 3 12 18 12 3

Solution:
Calculation of Mean Deviation and its coefficient

Formula:
∑ f |D|
Mean Deviation (M.D) =
𝑁
MD
Coefficient of MD =
Median

|D| = |X -Median |
x f c.f f |D|
|D| = |X - 12 |
10 3 3 2 6
11 12 15 1 12
12 18 33 0 0
13 12 45 1 12
14 3 48 2 6

N=∑ f ∑ f |D | = 36
= 48

52
To find Median
𝑁+1 th
Median = Size of ( ) Item
2
48+1 th
= Size of ( ) Item
2

= Size of 24.5 th Item

∴ Median =12

∑ f |D|
Mean Deviation (M.D) =
𝑁
36
=
48

∴ Mean Deviation (M.D) = 0.75

MD
Coefficient of MD =
Median
0.75
=
12

∴ Coefficient of MD = 0.0625

Answer:
Mean Deviation (M.D) = 0.75
Coefficient of MD = 0.0625

53
Example: 3.2.2. Calculate the mean deviation and its coefficient from the mean for
the following data:
Size 2 4 6 8 10 12 14 16
Frequency 2 2 4 5 3 2 1 1

Solution:
Calculation of Mean Deviation and its coefficient

Formula:
∑ f |D|
Mean Deviation (M.D) =
𝑁
MD
Coefficient of MD =
Median

|D| = |X -Median |
x f c.f f |D|
|D| = |X - 8 |
2 2 2 6 12
4 2 4 4 8
6 4 8 2 8
8 5 13 0 0
10 3 16 2 6
12 2 18 4 8
14 1 19 6 6
16 1 20 8 8

N=∑ f ∑ f |D | = 56
= 20

54
To find Median
𝑁+1 th
Median = Size of ( ) Item
2
20+1 th
= Size of ( ) Item
2

= Size of 10.5 th Item

∴ Median =8

∑ f |D|
Mean Deviation (M.D) =
𝑁
56
=
20

∴ Mean Deviation (M.D) = 2.8

MD
Coefficient of MD =
Median
2.8
=
8

∴ Coefficient of MD = 0.35

Answer:
Mean Deviation (M.D) = 2.8
Coefficient of MD = 0.35

55
Computation of Mean Deviation (M.D) -(Type-3- Continuous Series):

Calculation of Mean Deviation and its coefficient

Formula:
∑ f |D|
Mean Deviation (M.D) =
𝑁
MD
Coefficient of MD =
Median

Example: 3.3.1. Calculate the median, mean deviation and its coefficient of the
following data:

Size Frequency Size Frequency

0-10 7 40-50 16
10-20 12 50-60 14
20-30 18 60-70 8
30-40 25

Solution:
Calculation of Mean, Mean Deviation and its coefficient

Formula:
∑ f |D|
Mean Deviation (M.D) =
𝑁
MD
Coefficient of MD =
Median

56
 m.p |D| = |X -Median |
x f c.f f |D|
m |D| = |X – 35.2 |
0-10 7 7 5 30.2 211.4
10-20 12 19 15 20.2 242.4
20-30 18 37 25 10.2 183.6
30-40 25 62 35 0.2 5.0
40-50 16 78 45 9.8 156.8
50-60 14 92 55 19.8 277.2
60-70 8 100 65 29.8 238.4

N=∑ f ∑ f |D |
= 100 =1314.8

To find Median
𝑁
Median = Size of ( ) th Item
2
100 th
= Size of ( ) Item
2

= Size of 50 th Item
= 30-40

𝐍
−𝐜𝐟
𝟐
Median = L + ( )*i
𝒇
N
L=30, = 50, cf = 37, f = 25, i=10
2
50− 37
= 30 + ( ) * 10
25
13
= 30 + (
25
) * 10

57
 = 30 + (0.52) *10
= 30 + 5.2
∴ Median = 35.2

∑ f |D|
Mean Deviation (M.D) =
𝑁
1314.8
=
100

∴ Mean Deviation (M.D) = 13.148

MD
Coefficient of MD =
Median
13.148
=
35.2

∴ Coefficient of MD = 0.3735

Answer:
Mean = 35.2
Mean Deviation (M.D) = 13.148
Coefficient of MD = 0.3735

58
Example: 3.3.2. Calculate the mean deviation and its coefficient from the
following data:

Class Frequency Class Frequency

0-10 5 40-50 20
10-20 8 50-60 14
20-30 12 60-70 12
30-40 15 70-80 6

Solution:

Calculation of Mean, Mean Deviation and its coefficient

Formula:
∑ f |D|
Mean Deviation (M.D) =
𝑁
MD
Coefficient of MD =
Median

59
 m.p |D| = |X -Median |
x f c.f f |D|
m |D| = |X – 43 |
0-10 5 5 5 38 190
10-20 8 13 15 28 224
20-30 12 25 25 18 216
30-40 15 40 35 8 120
40-50 20 60 45 2 40
50-60 14 74 55 12 168
60-70 12 86 65 22 264
70-80 6 92 75 32 192

N=∑ f ∑ f |D |
= 92 =1414

60
To find Median
𝑁
Median = Size of ( ) th Item
2
92 th
= Size of ( ) Item
2

= Size of 46 th Item
= 40-50

𝐍
−𝐜𝐟
𝟐
Median = L + ( )*i
𝒇
N
L=40, = 46, cf = 40, f = 20, i=10
2
46− 40
= 40 + ( ) * 10
20
6
= 40 + ( ) * 10
20
= 40 + (0.3) *10
= 40 + 3
∴ Median = 43

∑ f |D|
Mean Deviation (M.D) =
𝑁
1414
=
92

∴ Mean Deviation (M.D) = 15.37

MD
Coefficient of MD =
Median
15.37
=
43

∴ Coefficient of MD = 0.357

61
Answer:
Median = 43
Mean Deviation (M.D) = 15.37
Coefficient of MD = 0.357

62
 4. The Standard Deviation (SD)

 The standard deviation concept was introduced by Karl Pearson.

 Standard deviation is also known as root mean square deviation for the
reason that it is the square root of the mean of the squared deviation from
the arithmetic mean.
 Standard deviation is denoted by σ (sigma).
 The standard deviation measures the absolute dispersion for variability of
distribution.

63
Difference between Mean Deviation and Standard Deviation

64
Calculation of Standard Deviation

Type-1-Individual Observations:
1. Actual Mean Method (Direct Method)
2. Assumed Mean Method (Shortcut Method)

Type-2-Discrete Series:
1. Actual Mean Method
2. Assumed Mean Method
3. Step Deviation Method

Type-3- Continuous Series:

1. Assumed Mean Method
2. Step Deviation Method

65
Type-1-Individual Observations:

1. Actual Mean Method (Direct Method)

2. Assumed Mean Method (Shortcut Method)

Where, d = X – A

A = Assumed Mean
n = no. of. observations

66
Example: 1
Calculate S.D for the following data
3, 8, 6, 10, 12, 9, 11, 10, 12, 7

Solution:
Calculation of Standard Deviation using Actual Mean Method

Formula

X X2
3 9
8 64
6 36
10 100
12 144
9 81
11 121
10 100
12 144
7 48

∑X = 88 ∑X 2 = 848

67
 2
∑𝑋 2 ∑𝑋
𝑆. 𝐷, 𝜎 = √ −( )
𝑛 𝑛

848 88 2
= √ −( )
10 10

= √84.8 − (8.8)2

= √84.8 − 74.44

= √7.36

∴ 𝑆. 𝐷, 𝜎 = 2.71

Answer:

Standard Deviation (𝜎) = 2.71

68
Example: 2
Calculate S.D for the following set of observations
45, 36, 40, 37, 39, 42, 45, 35, 40, 39

Solution:
Calculation of Standard Deviation using Assumed Mean Method

Formula

2
∑𝑑 2 ∑𝑑
𝑆. 𝐷, 𝜎 = √ −( )
𝑛 𝑛

X d=X-A d2
d=X-40
45 5 25
36 -4 16
40 0 0
37 -3 9
39 -1 1
42 2 4
45 5 25
35 -5 25
40 0 0
39 -1 1

∑d = - 2 ∑d 2 = 106

69
 2
∑𝑑 2 ∑𝑑
𝑆. 𝐷, 𝜎 = √ −( )
𝑛 𝑛

106 −2 2
= √ −( )
10 10

= √10.6 − (−0.2)2

= √10.6 − 0.04

= √10.56

∴ 𝑆. 𝐷, 𝜎 = 3.25

Answer:

Standard Deviation (𝜎) = 3.25

70
Example: 3
Blood serum cholesterol level of 10 persons are as under:
240, 260, 290, 245, 255, 288, 272, 263, 277, 251
Calculate Standard Deviation with the help of Assumed Mean.

Solution:
Calculation of Standard Deviation using Assumed Mean Method

Formula

2
∑𝑑 2 ∑𝑑
𝑆. 𝐷, 𝜎 = √ −( )
𝑛 𝑛

X d=X-A d2
d=X-264
240 -24 576
260 -4 16
290 26 676
245 -19 361
255 -9 81
288 24 576
272 8 64
263 -1 1
277 13 169
251 -13 169

∑X = 2641 ∑d = 1 ∑d 2 = 2689

Note:
∑X 2641
x̄ = = = 264.1
𝑛 10

264.1  Actual Mean

264  Assumed Mean

71
 2
∑𝑑 2 ∑𝑑
𝑆. 𝐷, 𝜎 = √ −( )
𝑛 𝑛

2689 1 2
= √ −( )
10 10

= √268.9 − (0.1)2

= √268.9 − 0.01

= √268.89

∴ 𝑆. 𝐷, 𝜎 = 16.398

Answer:

Standard Deviation (𝜎) = 16.398

72
Example: 4
Calculate the Standard Deviation from the following observations:

240.12 240.13 240.15 240.12 240.17

240.15 240.17 240.16 240.22 240.21

Solution:
Calculation of Standard Deviation using Assumed Mean Method

Formula

2
∑𝑑 2 ∑𝑑
𝑆. 𝐷, 𝜎 = √ −( )
𝑛 𝑛

X d=X-A d2
d=X-240
240.12 0.12 0.0144
240.13 0.13 0.0169
240.15 0.15 0.0225
240.12 0.12 0.0144
240.17 0.17 0.0289
240.15 0.15 0.0225
240.17 0.17 0.0289
240.16 0.16 0.0256
240.22 0.22 0.0484
240.21 0.21 0.0441

∑X = 2401.6 ∑d = 1.6 ∑d 2 = 0.2666

Note:
∑X 2401.6
x̄ = = = 240.16
𝑛 10

240.16 Actual Mean

240  Assumed Mean

73
 2
∑𝑑 2 ∑𝑑
𝑆. 𝐷, 𝜎 = √ −( )
𝑛 𝑛

0.2666 1.6 2
= √ −( )
10 10

= √0.2666 − 0.0256

= √0.00106

∴ 𝑆. 𝐷, 𝜎 = 0.033

Answer:

Standard Deviation (𝜎) = 0.033

74
Type-2-Discrete Series:
1. Actual Mean Method

∑𝑓𝑋
Where, 𝑋 =
𝑁

2. Assumed Mean Method

2
∑𝑓𝑑2 ∑𝑓𝑑
𝑆. 𝐷, 𝜎 = √ −( )
𝑁 𝑁

Where, d = X - A

3. Step Deviation Method

∑𝑓𝑑 2 ∑𝑓𝑑 2
𝑆. 𝐷, 𝜎 = √ −( ) *i
𝑁 𝑁

𝑋−𝐴
Where, d =
𝑖
(When intervals are same)

75
Example: 1
The annual salaries of a group of employees are given in the following tables:

Salaries 45 50 55 60 65 70 75 80
(in Rs.’000)
[Link] 3 5 8 7 9 7 4 7
Calculate Mean and Standard Deviation of the salaries

Solution:
Calculation Mean and Standard Deviation using Actual Mean Method

Formula
Actual Mean Method

∑𝑓𝑋
Where, 𝑋 =
𝑁

76
X f fX X-𝑿 (X-𝑿)2 f(X-𝑿)2

X – 63.6
45 3 135 -18.6 345.96 1037.88

50 5 250 -13.6 184.96 924.8

55 8 440 -8.6 73.96 591.68

60 7 420 -3.6 12.96 90.72
65 9 585 1.4 1.96 17.64

70 7 490 6.4 40.96 268.72

75 4 300 11.4 129.96 519.84

80 7 560 16.4 268.96 1882.72

∑ fX=3180 ∑f(X-𝑿)2
N=50
∑𝑓𝑋
𝑋= = 5352
𝑁

3180
𝑋=
50

𝑋 = 63.6

77
 5352
= √
50

= √107.04

∴ 𝑆. 𝐷, 𝜎 = 10.35

Answer:
Mean (𝑋) = 63.6

Standard Deviation (𝜎) = 10.35

78
Example: 2
The annual salaries of a group of employees are given in the following tables:

Salaries 45 50 55 60 65 70 75 80
(in Rs.’000)
[Link] 3 5 8 7 9 7 4 7
Calculate Standard Deviation of the salaries

Solution:
Calculation Standard Deviation using Assumed Mean Method

Formula

Assumed Mean Method

2
∑𝑓𝑑2 ∑𝑓𝑑
𝑆. 𝐷, 𝜎 = √ −( )
𝑁 𝑁

Where, d = X - A

79
 d=X–A
X f d = X – 60 d2 fd fd2

45 3
-15 225 -45 675
50 5
-10 100 -50 500
55 8
-5 25 -40 200
60 7
0 0 0 0
65 9
5 25 45 225
70 7
10 100 70 700
75 4
15 225 60 900
80 7
20 400 140 2800

∑ f d =180 ∑ f d 2 = 6000
N=50

80
 2
∑𝑓𝑑2 ∑𝑓𝑑
𝑆. 𝐷, 𝜎 = √ −( )
𝑁 𝑁

6000 180 2
= √ −( )
50 50

= √120 − 12.96

= √107.04

∴ 𝑆. 𝐷, 𝜎 = 10.35

Answer:

Standard Deviation (𝜎) = 10.35

81
Example: 3
The annual salaries of a group of employees are given in the following tables:

Salaries 45 50 55 60 65 70 75 80
(in Rs.’000)
[Link] 3 5 8 7 9 7 4 7
Calculate Standard Deviation of the salaries

Solution:
Calculation Standard Deviation using Step Deviation Method

Formula

Step Deviation Method

∑𝑓𝑑 2 ∑𝑓𝑑 2
𝑆. 𝐷, 𝜎 = √ −( ) *i
𝑁 𝑁

(𝑋−𝐴)
Where, d =
𝑖
(When intervals are same)

82
 (𝑋−𝐴)
d=
𝑖
(𝑋−60)
X f d=
5
d2 fd fd2

45 3
-3 9 -9 27
50 5
-2 4 -10 20
55 8
1 1 -8 8
60 7
0 0 0 0
65 9
1 1 9 9
70 7
2 4 14 28
75 4
3 9 12 36
80 7
4 16 28 112

∑ f d =36 ∑ f d 2 = 240
N=50

83
 ∑𝑓𝑑 2 ∑𝑓𝑑 2
𝑆. 𝐷, 𝜎 = √ −( ) *i
𝑁 𝑁

240 36 2
= √ −( ) *5
50 50

= √4.8 − 0.5184 *5

= √4.2816 *5
= 2.0692 * 5

∴ 𝑆. 𝐷, 𝜎 = 10.35

Answer:

Standard Deviation (𝜎) = 10.35

84
Type-3- Continuous Series:
1. Assumed Mean Method

2
∑𝑓𝑑2 ∑𝑓𝑑
𝑆. 𝐷, 𝜎 = √ −( )
𝑁 𝑁

Where, d = M - A

2. Step Deviation Method

∑𝑓𝑑 2
∑𝑓𝑑 2
𝑆. 𝐷, 𝜎 = √ −( ) *i
𝑁 𝑁

(𝑀−𝐴)
Where, d =
𝑖

85
 Example: 1
Find the Standard Deviation of the following distribution

Age 20-25 25-30 30-35 35-40 40-45 45-50

[Link] .Persons 170 110 80 45 40 35

Take Assumed Mean = 32.5

Solutions:
Calculate Standard Deviation
Formula,
Assumed Mean

2
∑𝑓𝑑2 ∑𝑓𝑑
𝑆. 𝐷, 𝜎 = √ −( )
𝑁 𝑁

Where, d = M - A

86
 m.p d=M–A
X f M d = X – 32.5 d2 fd fd2

20-25 170 22.5

-10 100 -1700 17000
25-30 110 27.5
-5 25 -550 2750
30-35 80 32.5
0 0 0 0
35-40 45 37.5
5 25 225 1125
40-45 40 42.5
10 100 400 4000
45-50 35 47.5
15 225 525 7875

∑fd ∑fd2
N=480 = -1100 = 32750

87
 2
∑𝑓𝑑2 ∑𝑓𝑑
𝑆. 𝐷, 𝜎 = √ −( )
𝑁 𝑁

32750 −1100 2
= √ −( )
480 480

= √68.23 − (−2.292)2

= √68.23 − 5.25)

= √62.98

∴ 𝑆. 𝐷, 𝜎 = 7.935

Answer:

Standard Deviation (𝜎) = 7.935

88
 Example: 2

Find the Standard Deviation of the following distribution

Age 20-25 25-30 30-35 35-40 40-45 45-50

[Link] .Persons 170 110 80 45 40 35

Take Assumed Mean = 32.5

Solutions:
Calculate Standard Deviation using Step Deviation Method

Formula,

Step Deviation Method

∑𝑓𝑑 2 ∑𝑓𝑑 2
𝑆. 𝐷, 𝜎 = √ −( ) *i
𝑁 𝑁

(𝑀−𝐴)
Where, d =
𝑖

89
 m.p (𝑀−𝐴)
d=
M 𝑖
X f (𝑀−32.5) d2 fd fd2
d=
5

20-25 170 22.5 -340

-2 4
680
25-30 110 27.5 -110
-1 1
110
30-35 80 32.5 0
0 0
0
35-40 45 37.5 45
1 1
45
40-45 40 42.5 80
2 4
160
45-50 35 47.5 105
3 9
315

∑fd ∑fd2
N=480 = -220 = 1310

90
 ∑𝑓𝑑 ∑𝑓𝑑 2 2
𝑆. 𝐷, 𝜎 = √ −( ) *i
𝑁 𝑁

1310 −220 2
= √ −( ) *5
480 480

= √2.729 − 0.21 * 5

= √2.519 * 5

=1.587 * 5

∴ 𝑆. 𝐷, 𝜎 = 7.935

Answer:

Standard Deviation (𝜎) = 7.935

91
 Example: 3

Calculate Mean, Median, and Standard Deviation from the following data.
Profits
0-10 10-20 20-30 30-40 40-50 50-60
([Link])
[Link]
12 17 23 39 16 3
.Companies

Solutions:
Calculate Mean, Median, and Standard Deviation

Formula
(i) Mean
∑ fd
Mean , 𝑋 = 𝐴 + *i
𝑁

(ii) Median

𝑁
Median = Size of ( ) th Item
2
𝐍
−𝐜𝐟
𝟐
Median = L + ( )*i
𝒇

(iii) Standard Deviation

∑𝑓𝑑 ∑𝑓𝑑 2 2
𝑆. 𝐷, 𝜎 = √ −( ) *i
𝑁 𝑁

92
 m.p (𝑀−𝐴)
d=
M 𝑖
X f (𝑀−35) d2 fd fd2
d=
10

0-10 12 5 -3 9 -36 108

10-20 17 15 -2 4 -34 68

20-30 23 25 -1 1 -23 23

30-40 39 35 0 0 0 0

40-50 16 45 1 1 16 16

50-60 3 55 2 1 6 12

∑fd ∑fd2
N=110 = -71 = 227

93
(i) Mean
∑ fd
Mean , 𝑋 = 𝐴 + *i
𝑁
Where, A=35 , i =10
−71
= 35 + ( ) * 10
110

= 35 + (−0.645) * 10

= 35 − 6.45

∴ Mean, 𝑋 = 28.55

(ii) Median

110 th
Median = Size of ( ) Item
2

= Size of 55 th Item
= 30-40
Median lies in the class 30-40
𝐍
−𝐜𝐟
𝟐
Median = L + ( )*i
𝒇
55− 52 Where,
= 30 + ( ) * 10
39 L=30, N/2 = 55, c.f = 52, i=10

3
= 30 + ( ) * 10
39
= 30 + 0.77

∴ Median = 30.77

94
(iii) Standard Deviation

∑𝑓𝑑 2 ∑𝑓𝑑 2
𝑆. 𝐷, 𝜎 = √ −( ) *i
𝑁 𝑁

227 −71 2
= √ −( ) * 10
110 110

= √2.064 − 0.417 * 10

= √1.647 * 10

=1.283 * 10

∴ 𝑆. 𝐷, 𝜎 = 12.83

Answer:

Mean
Mean , 𝑋 = 28.55
Median
Median = 30.77
Standard Deviation
S.D, σ = 12.83

95
 Example: 4

Calculate Standard Deviation for the following data.

Marks 0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80

[Link] 20 8
12 18 35 42 50 45
.Students

96