MEASURES OF

DISPERSION
AND LOCATION
GROUP 4
Learning Objectives:
After completing this chapter, the students will able to:

Compute the different measures for both grouped and

ungrouped data.
Discuss the different measures of dispersion and its
application.
Recognize the relationship between variance and standard
deviation. Solve and interpret quartiles, deciles and
percentiles.
Compute and interpret the coefficient of variation, the
coefficient of skewness and the kurtosis.
 Range
It is the Formula for
Formula Grouped
difference
for Data:
between
Ungroupe R = Upper
the highest
d Data: boundary of the
and lowest R V– highest class -
values in a = LV Lower
data set. boundary of the
 Example for Ungrouped Data

The daily rates of a sample of eight employees at

GMS Inc. are Php550, 420, 560, 500, 700, 670, 860.
Find the
range.

Given: 420 R= ?
HV=
860
LV=
S = HV-LV
o R= 860-
l 420
u R= Php 440
t
i
o
n
:
R
 Example for Grouped Data
Find the range of the given data below.

Given:
HC=34+0.5= 34.5
LC=10-0.5= 9.5
R= ?
Solution:
R= HC-LC
R= 34.5-9.5
R= 25
 Average Deviation

It is also called mean absolute deviation.

An element of the data set is the absolute
difference between the element and a given
point.
Uses the data’s original units, which simplifies
interpretations.
Average Deviation for Ungrouped
Data

Where:
AD= average
AD
= n deviation Х= the value
of any observations
o or measurement
r μ= population mean
X¯ = sample
mean N=
AD population
= N
n= sample population
 Example 1:

The daily rates of a sample of eight

employees at GMS Inc. are P550, P420,
P560, P500, P700, P670, P860,
P480. Find the
average deviation.
Solution:
Step 1: Compute the mean of the data set.
Step 2: Subtract the mean from each of the value in the
data set.

550-592.5 = -42.5

Notice that the sum of

is always equals to
0.
Step 3: Get the absolute values of , then get the sum.

x
Step 4: Solve the average deviation.

The average deviation

of the data set is P113.13
Average Deviation for Grouped Data

Where:
AD= average
AD
= n deviation f=
frequency
o Х= the value of any
observations
r
or
measuremen
AD t
= N μ= population mean
X¯ = sample
 Example 2:
The data shows the frequency distribution of the amounts of
electricity consumption of a typical household in Batangas
City for the month of January 2023. Find the average
deviation.
Amount Number
of of
Electric Families
Bill
2
2,700-
2,849 9

2,850- 15
2,999
9
3,000-
3,149
5
Step 1: Compute the mean of the frequency distribution.

Frequen Class
Class fx
cy (f) Midpoint
Limits
(x)
2 5,549
2,700- 2,774.5
2,849 9 26,320.
2,924.5 5
2,850- 15
2,999 3,074.5 46,117.
9 5
3,000- 3,224.5
3,149 29,020.
5
3,374.5 5
40
16,872.
Step 2: Subtract the mean from each of the value in the data
set.

Frequen Class
Class
cy (f) Midpoint
Limits
(x)
2 - 2,774.5 - 3,097
2,700- 2,774.5 322.5 = -322.5
2,849 9
2,924.5 -
2,850- 15 172.5
2,999 3,074.5
9 -
3,000- 3,224.5 22.5
3,149
5
3,374.5 127.
5
40
Step 3: Get the absolute values of , then get the sum.

Frequen Class
Class
cy (f) Midpoint
Limits
(x)
2 - 322.
2,700- 2,774.5 322.5 5
2,849
9
2,924.5 - 172.
2,850- 172.5 5
2,999 15
3,074.5
- 22.
3,000- 9 22.5 5
3,149 3,224.5
5 127. 127.
3,150- 3,374.5 5 5
40
Step 4: Obtain the product of and f, and then add

Class
Frequen
Class Midpoin
cy (f)
Limits t (x)

2 2,774.
5
- 322. 645 2(322.5
2,700- 322.5 5
2,849 )
9 1,552.
2,924. - 172. 5 = 645
2,850- 5 172.5 5
15
2,999
337.
3,074. - 22. 5
9 5
3,000- 22.5 5
3,149
1,147.
5 3,224. 127. 127. 5
3,150- 5 5
40
Step 4: Solve the average deviation.

The average deviation

of the data set is
P126.75
 VARIANCE

Commonly used in statistical analysis and is a

measure of the "spread" of a data set.
Is a mathematical expectation of the average
squared deviations from the mean.
 STANDARD DEVIATION
One of the most widely used measures of
dispersion. Also known as historical volatility
and is used by investors as a gauge for the
amount of expected volatility.
Is calculated as the square root o variance.
 Sample Variance and Sample
Standard Deviation for
Ungrouped Data

Sample Sample Where:

Variance
Standard
Deviation

or
or
 Example 3:

The daily rates of a sample of eight

employees at GMS Inc. are P550, P420,
P560, P500, P700, P670, P860,
P480. Find the
variance and standard deviation.
Solution:
Step 1: Compute the mean of the data set.
Step 2: Subtract the mean from each of the value in the
data set.

-
550-592.5 = -42.5

Notice that the sum of

is always equals to
0.
Step 3: Square the , then get the sum.

-
Step 4: Solve for variance and the standard deviation.
We can also obtain the standard deviation simply
extracting the square root of the variance.

The variance is
P20,421,43 and the
standard deviation is
P142.90.

s= 142.90
Sample Variance and Sample Standard
Deviation for Grouped Data
Where:
 Example 4:

SJS Travel Agency, a Class Frequency

Limits (f)
nationwide local travel
agency, offers special 18-26 3
rates during the summer
27-35 5
period.
The owner wants 36-44 9
additional information on
45-53 14
the ages of those people
taking travel tours. A 54-62 11
random sample of 50
customers taking travel 63-71 6

tours last summer 72-80 2

revealed these ages.
Determine the variance
and standard deviation.
Step 1: Determine the midpoints of each class limit.

Class Frequency Class Midpoint

Limits (f) (x)

18-26 3 22

27-35 5 31

36-44 9 40

45-53 14 49

54-62 11 58

63-71 6 67

72-80 2 76
Step 2: Determine the product fx.

Class Limits Frequency (f) Class Midpoint fx

(x)

18-26 3 22 66

27-35 5 31 155

36-44 9 40 360

45-53 14 49 686

54-62 11 58 638

63-71 6 67 402

72-80 2 76 152

Total: 50 ∑fx= 2,459

Step 3: Compute the mean

The mean age of the frequency distribution in 49.18

Step 4: Subtract the mean from each of the value in the data
set.
Clas Frequen Class
fx
s cy (f) Midpoint
Limit (x)
s 3 66 - 22 - 49.18
22 27.18
18-26 5 15 = -27.18
31 5 -
27- 9 18.18
35 40 36
14 0 -
36- 49 9.18
44 68
11
58 6 -
45- 0.18
6
53 63
67
8 8.8
2
54- 2
Step 5: Square the
Clas Frequen Class
fx
s cy (f) Midpoint
Limit (x)
s 3 66 - 738.752
22 27.18 4
18-26 5 15 = 738.7524
31 5 - 330.512
27- 9 18.18 4
35 40 36
14 0 - 84.272
36- 49 9.18 4
44 68
11
58 6 - 0.032
45- 0.18 4
6
53 63
67
8 8.8 77.792
2
54- 2 4
62 76
Step 6: Get the product of f and , and then obtain the sum
Step 4: Solve for variance and the standard deviation.
We can also obtain the standard deviation simply
extracting the square root of the variance.

The variance is 180.15

and the standard
deviation is 13.42.

s= 13.42
Quartiles, Deciles, and Percentiles

Quartiles divide a data set into four equal

parts Deciles divide a data set into 10 equal
parts, with the nth decile representing the
value below which n of 10% of the data falls.
Percentiles divide a data set into 100 equal
parts,
with the nth percentile representing the
value below which n% of the data falls.
 Quartiles for Ungrouped Data

Formula: Where:
 Example 5
Find the first, second, and third quartiles of the
ages of 9 middle-managements employees of a
certain company. The ages are 53, 45, 59, 48, 54,
46, 51, 58, and 55.

Step 1: Arrange the data in order.

45, 46, 48, 51, 53, 54, 55, 58, 59

Step 2: Select the first, second, and third
quartiles value.
Step 3: Identify the first, second, and third quartiles value in
the data set

2.5th 5th 7.5th

Since the 2.5th falls between 46 and 48; and 7.5th falls between 55
and 58 we can determine the first and third quartiles of the data
set by getting the average of the two values

Therefore, Q1= 47. Q2= 53, and

Q3= 56.5
 Quartiles for Grouped Data

Formula:
 a e3
Example g t.
6 e h

SJS Travel Agency, a s e

nationwide local travel

Class . Q
Frequency
Limits (f)
1
agency, offers special rates 18- 3
D
26 ,
during the summer period. e5
27- Q
The owner wants additional 35 t
36- 9 2
information on the ages of e
44 ,
those people taking travel 45- r1
53 4 a
tours. A random sample of 50 m
54- 1 n
customers taking travel tours 62 i1
d
last summer revealed these 63- n6
71 Q
Step 1: Construct a cumulative frequency column in the table.

Frequen
Class c
cy (f)
Limits f

3
18-26 3
5
Step 2: Determine the Q1 class
27-35 8
9
36-44 1
14 7
45-53
11 3
54-62 1
6
63-71 4
2
2
72-80
Step 3: Identify the Q1 class by locating the 12.5th ranked in the table.

Frequen
Class c
cy (f)
Limits f

3
18-26 3
5
27-35 8
9
Q1 class
36-44 1
7
1
45-53 4
3
54-62 1
1
1
63-71 4
2
6
72-80
Step 4: Determine the values of LB, cf, f, i and n.

Frequen
Class cf
Limits cy (f)

3 3
18-26
5 cf=
27-35 8
LB= 36-0.5= f= 9 Q1 class
35.5 36-44 17
1
45-53 4 31

54-62 1 42
1
63-71 48
6
72-80 50
Step 5: Compute for the value of the first quartile.

Given:
LB= 35.5
n= 50
cf= 8
f= 9
i= 9
Q1= ? Q1= 40
 Deciles for Grouped Data

Formula:
 Percentiles for Grouped Data

Formula:
 a e
Example g t
7 e h

SJS Travel Agency, a s e

nationwide local travel

Class . D
Frequency
Limits (f)
agency, offers special rates 18- 3
7
D
26 a
during the summer period. e5
27-
The owner wants additional 35
n
t
information on the ages of 36- 9 d
44 e
those people taking travel P
45- r1
tours. A random sample of 50 53 4 2
m
54- 1 2
customers taking travel tours 62 i1
last summer revealed these 63-
.
n6
71
Step 1: Construct a cumulative frequency column in the table.

Frequen
Class c
cy (f)
Limits f

3
18-26 3
5
Step 2: Determine the D7 class
27-35 8
9
36-44 1
14 7
45-53
11 3
54-62 1
6
63-71 4
2
2
72-80
Step 3: Identify the D7 class by locating the 35th ranked in the table.

Frequen
Class c
cy (f)
Limits f

3
18-26 3
5
27-35 8
9
36-44 1
14 7
45-53
11 3
54-62 1 D7 class
6 4
63-71
2
2
72-80
 Step 4: Determine the values of LB, cf, f, i and n.

Frequen
Class cf
cy (f)
Limits

3 3
18-26
5 8
27-35
9 17
36-44
14 cf=3
45-53 1
LB= 54-0.5= f=11 Q1 class
53.5 54-62 42
6
63-71 48
2
72-80 50
Step 5: Compute for the value of the first quartile.

Given:
LB= 53.5
n= 50
cf= 31
f= 11
i= 9
D7= ? D7= 56.77
 Interquartile Range
The interquartile range (IQR) is a
measure of variability (or statistical
dispersion) also called the
midspread or middle fifty.
It is the difference between the third
and first quartiles.
 Example 8

Find the interquartile range of the

ages of 9 middle-management
employees of a certain company.
The age sare 53, 45, 59, 48, 54, 46,
51, 58,and 55.
 Solution
Formula:
Q3-Q1
Remember that Q1=47 and Q3 =56.5

Interquartile Range (IQR) = Q3-Q1

Interquartile Range (IQR) = 56.5–47
Interquartile Range (IQR) = 9.5
ence, the interquartile range is 9.5
 Quartile Deviation

This is called sampling fluctuation.

It is not a popular measure of
dispersion.
A slightly better measure of absolute
dispersion than the range
Quartile Deviation(QD)= Q3-Q1/2
 Example 9

Find the quartile deviation of the

ages of 9 middle-management
employees of a certain company.
The ages are 53, 45, 59, 48, 54, 46,
51, 58,and 55.
 Solution
Remember that Q1= 47 and Q3 = 56.5

Quartile Deviation(QD) =Q3-Q1/2

Quartile Deviation(QD) =56.5–47/2
Quartile Deviation(QD) = 4.75
ence, the quartile deviation is 4.75
 Coefficient of Variation

The coefficient of variation, denoted

by CV, is the standard deviation
divided by the mean. The result is
expressed as a percentage.
Coefficient of Variation
 Example 10
The average age of the supervisors at GMS
Corporation is
30 years, with a standard deviation of 3; the
average monthly salary of the supervisors is
P45,000, with standard deviation of P3,150.
Determine the coefficient of variations of age and
salary.
Solution:
Collect the information needed to compute
for the values of coefficient of variations.

Since the
coefficient of
variation is larger
for age,the ages
are more variable
than the salary.
 Interpretation and
Uses of Standard
Deviation

Chebyshev’s Theorem

For any set of observations, the

proportion of the values that lie within k
standard deviations of the mean is at least
,where k is any constant
greater than1.
 Example 11

The mean price of laptop computer is ₱ 2 5 ,

5 0 0 and the standard deviation is ₱2,500.
Find the price range for which at least
88.89% of the laptop will sell.
Solution:
Chebychev’s theorem states that 88.89% of the data values
will fall within 3 standards of the mean. ence,

Then,

Therefore, at least 88.89% of all laptops sold

will have a price range from P18,000 and
P33,000

k= 3
 Kurtosis

Kurtosis is from the Greek word kyrtos or

kurtos, meaning bulging.
It measures the peakedness or flatness
distribution(as compared to the
normal distribution, which
shows a kurtosis of zero).
 Formula

kurt=
 Example 12

The daily rates of a sample of eight

employees at GMS Inc. are P550, P420,
P560, P500, P700, P670, P860, P480.
Determine the
kurtosis and describe the type.
Solution:
Step 1: Compute the mean of the data set.
Step 2: Subtract the mean from each of the value in the
data set.

-
550-592.5 = -42.5

Notice that the sum of

is always equals to
0.
Step 4: Solve the standard deviation

s= 142.90
Step 5: Obtain the values of
Step 6: Compute for the values of , then get the sum.
Step 7: Compute for the value of kurtosis.

ence, the kurtosis is 0.3724. We conclude that the

distribution on daily rates of employee is somewhat
leptokurtic.
 Skewness

It measure the general shape of the

distribution or the lack of symmetry of a
distribution.
It ranges from -3 to +3.
It relates the difference between the mean
and the median to the standard
deviation.The direction of the long tail of the
distribution points the direction of the
skewness.
 TYPES
OF
DISTRIBUTION
 Symmetrical Distribution

When the data values are evenly

distributed on both sides of the mean.
Also, the distribution is unimodal and the
mean, median, and mode are similar and
are at the center of the distribution
 Positively Skewed
Distribution

When most of the values in the data fall

to the left of the mean and group at
the lower end of the distribution; the
tail is to the right
 Negatively Skewed
Distribution

When the mass of the data values fall to

the right of the mean and group at the
upper end of the distribution, with the tail
to the left. In addition, the mean is to the
left of the median, and the mode is to the
right of the median.
Pearson's Coefficient of
Skewness

The coefficient of skewness is positive

when the median is less than the mean
and in that case the tail of the
distribution is skewed to the right
(notionally the positive section of a
cartesian frame).
Pearson's Coefficient of
Skewness

Where:
sk= coefficient of
skewness x= sample
mean
s= sample
standard
deviation
 Example 13
A motorcycle dealer ship pays its
salesperson a salary plus a commission on
sales. The mean monthly commission is P 8,
800, the median P9,000, and the standard
deviation P1,200. Determine the coefficient
of skewness. Comment on the shape of
distribution.
Solution:

Step 1: Collect the Step 2: Solve for the

following coefficient of
information. skewness.

Mean= 8,800
Median= 9,000
Standard Deviation=
1,200

sk= -0.50
This indicates that there is a slight negative
skewness in the distribution of commission on
sales.
Software Coefficient of
Skewness
Where:
sk= coefficient of
skewness n= sample
population
x= the value of any
particular observations or
measurement
x= sample mean
s= sample standard
deviation
 Example 14

The daily rates of a sample of eight

employees at GMS Inc. are P550, P420,
P560, P500, P700, P670, P860, P480.
Determine the
coefficient of skewness.
Solution:
Step 1. Determine the value of the mean
and standard deviation.
Take note that we already obtained the values of
mean and
standard deviation of the
data set. x̄ =592.50
s =142.90
Step 2: Subtract the mean from each of the value in the
data set.
Step 3: Obtain the values of
Step 4: Compute for the values of , then get the sum.
Step 5: Solve the coefficient of skewness.

sk= (0.19047619)(4.59)
sk= 0.87

We conclude that the daily rates of employees are

somewhat positively skewed.
 Bloxplot
also called Box and Whisker Plot
John Wilder Tukey introduced the boxplot in the
1970s.
It is a graph of a data set obtained by drawing a
horizontal line from the minimum data value to first
quartile, drawing a horizontal line to third quartile,
to the maximum data value and drawing a box
whose vertical pass throughQ1 and Q3 with a
vertical line inside the box passing through the
median or second quartile.
The boxplot will give the following information:
1. If the median is near the center of the box, the
distribution is approximately symmetric.
2.If the median falls to the right of the center of the box, the
distribution is negatively skewed.
3.If the median falls to the left of the center of the box, the
distribution is positively skewed.
4.If the lines are about the same length, the distribution is
approximately symmetric.
5.If the left line is larger than the right line, the distribution is
negatively skewed.
6.If the right line is larger than the left line, the distribution is
positively
skewed.
 Example 15

Construct a box plot for the data set

of the ages of 9middle-management
employees of a certain company. The
ages are 53, 45, 59,48,54,46, 51, 58,
and 55. What can we say about the
distribution of the data set.
T ANK
YOU