GRADE 12 ECONOMICS

CHAPTER - 15 Measures of Dispersion

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Measures of Dispersion

1. Range

Range (R):

R = L - S
Where L = largest value, S = smallest value.

Coefficient of Range (CR):

CR = (L - S) / (L + S)

2. Quartiles

Interquartile Range (IQR): IQR = Q3 - Q1

Quartile Deviation (QD): QD = (Q3 - Q1) / 2

Coefficient of Quartile Deviation (CQD): CQD = (Q3 - Q1) / (Q3 + Q1)

3. Mean Deviation (M.D.) / Average Deviation

Measures the average absolute deviation from a central value.

Series Type From Mean (X̄) From Median (Md) From Mode (Mo)
Individual M.D. = ∑|X - X̄| / n M.D.Md = ∑|X - Md| / n M.D.Mo = ∑|X - Mo| / n
Discrete M.D. = ∑f|X - X̄| / N M.D.Md = ∑f|X - Md| / N M.D.Mo = ∑f|X - Mo| / N
Continuous M.D. = ∑f|m - X̄| / N M.D.Md = ∑f|m - Md| / N M.D.Mo = ∑f|m - Mo| / N

Coefficient of Mean Deviation (CMD): CMD = M.D. / (Mean / Median / Mode)

4. Standard Deviation (σ)

Measures spread of data around the mean.

Method Individual Series Discrete Series Continuous Series
Actual Mean / Direct Method σ = √(∑(X - X̄)2 / n) σ = √(∑f(X - X̄)2 / N) σ = √(∑f(m - X̄)2 / N)
Assumed Mean / Shortcut Method σ = √( (∑d2 / n) - ( (∑d) / n )2 ) σ = √( (∑fd2 / N) - ( (∑fd) / N )2 ) σ = √( (∑fd2 / N) - ( (∑fd) / N )2 )
Step Deviation Method σ = √( (∑fd'2 / N) - ( (∑fd') / N )2 ) × h

Where: d = X - A (deviation from assumed mean), d' = (X - A) / h (step deviation), h = class width

Coefficient of Standard Deviation (CSD): CSD = σ / X̄

Coefficient of Variation (CV): CV = (σ / X̄) × 100%

5. Variance

Variance (σ2): Square of standard deviation.
σ2 = ∑(X - X̄)2 / n (or N / f)

Standard Deviation is the square root of variance: σ = √(σ2)

6. Combined Standard Deviation

For combining two datasets with different means and SDs:

σ12 = √( ( n112 + d12) + n222 + d22) ) / (n1 + n2) )

Where: d1 = X̄1 - X̄12, d2 = X̄2 - X̄12

12 = combined mean of both datasets.