Dispersion or variation is very useful in the application of advanced statistical techniques like correlation, regression analysis of time series, tests of significance etc. Also useful in determining the effective production control techniques.
Tuesday, 6 December 2016
B1 Statistics 16 Measures of variation or Dispersion
Need for Dispersion: -
Though the averages serve the purpose of describing the characteristics of the distribution, they cannot give a comprehensive idea and as such conceal many important facts about the distribution. One of the important aspects concealed by measures of central tendency is regarding the variability in the values. It fails to explain the extent of deviation from the average value in the given distribution. In the absence of such information. The averages among the different distributions cannot be meaningfully compared.
Then the need of measures of central tendency or other measures like dispersion and skewness are devised.
Measures of dispersion explain the degree of variation in the individual items from the central value, the skewness measures the degree of symmetry of asymmetry of the distribution.
The need for the measurement of dispersion when the averages are same but the variations in the individual items are different.
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