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Measures of Dispersions: Range, Quartile Deviation, Mean Deviation,

Standard Deviation and Lorenz Curve-Their Merits and Limitations
and Specific Uses

P.G.

Subject:
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Geography
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PreparedBy: Dr.KanhaiyaLal,AssistantProfessor,DDE,K.U.K.
Lesson:
II

1.1 Introduction
The measure of central tendency of any series or data
distribution summarises it into single representative form
which
hi h are useful
f l in
i many respectt but
b t it fails
f il to
t accountt the
th
general distribution pattern of data.
Thus any conclusion only based on central tendency
may be misleading.

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Dispersion tries to fill this gap by stressing on the

pattern of data distribution in any series.
Dispersion can prove very effective in association with
central tendency in making any statistical decision.

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Lesson:
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2.1 Objective
Any data series in statistics is usually represented by
some measure of central tendency.

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As the uniformity of a data series increases the value of

central measure become more representative.
p
So, it is always meaningful to interpret central measure
of a data series keeping in mind the dispersion present in
that series.Here, an insight has been given on what
dispersion is, what are its importance, what are different
t
types
off dispersion
di
i and
d how
h
some important
i
t t dispersions
di
i
can be calculated, their meritsdemerits, etc.

P.G.

Subject:
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Geography
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Paper:
V(a)
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Lesson:
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3.1 What is Measure of Dispersion?

Measure of dispersion has two terms, measure and
dispersion.
Measure here means specific method of estimation
while dispersion term means deviation or difference or
spread
d off certain
i values
l
f
from
their
h i centrall value.
l
Various statisticians have defined it variously.
y
According to Simpson and Kafka, The measurement of
the scatterness of the mass of figures in a series about an
average is called a measure of variation or dispersion.

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According to W. I. King, the term dispersion is used to

indicate the facts that within a given group,
group the items differ
from one another in size or in other words, there is lack of
uniformity in their sizes.

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Spiegel defines it as, The degree to which numerical

data tend to spread
p
about an average
g value is called the
variation or dispersion of the data.
Similarly, to A.
Similarly
A L.
L Bowley,
Bowley Dispersion
Dispersion is a measure of
variation of the items.
All these
th
d fi iti
definitions
shows
h
di
dispersion
i as a spread
d in
i data
d t
series with respect to some representative reference value
of the data series.

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Paper:
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Lesson:
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Dispersion is a directionless average estimate of

variations in individual observations from a central
measure to shows the degree of nonuniformity in our data
distribution.

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Dispersion is regarded as directionless measure since it

only shows the magnitude of deviation from central
measure, whether deviation is positive or negative it does
describe.

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It is also commonly known as scatter or spread or width

or variation or average of second order.
In real problems it is very rare that all observations have
the same values as that of its central tendency.

Paper:
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Lesson:
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For example, two cricketer with same 65 average score

per year considered for a span of 8 years,
years one with scores
close to average value in all years while the other with very
high score in some year and very poor in most of year,
cannott be
b rated
t d att same level.
l l Former
F
i more reliable
is
li bl
batsman. Similarly, only average annual income of India
measured as Gross Domestic Product (GDP) does not
mean each citizen has this income or income near to it or
merely by increasing GDP all citizens can be equally
developed
developed.
The central value gives nearly good results as long as our
d t distributions
data
di t ib ti
are normall i.e.
i our mostt off observations
b
ti
are close to it.

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4.1 Objectives of Measure of Dispersion

It is the value of dispersion which says how much
reliable a central tendency is?

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Usually, a small value of dispersion indicates that

measure of central tendency is more reliable
representative of data series and viceversa.
Many powerful analytical tools in statistics such as
correlation analysis, the testing of hypothesis, analysis of
variance, the statistical quality control, regression analysis
are based
b d on measure off variation
i ti off one kind
ki d or another
th
(Gupta, 2004).

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Lesson:
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The degree of data spread also helps in analysing

importance of different components of a system.
system For
example, if we take agricultural productivity to depend
upon input of fertilizer, hybrid seeds, irrigation,
i
insecticides,
ti id
pesticides
ti id and
d machinery.
hi
Th cause off any
The
abruptness in productivity can be analysed by comparing
central measure of different inputs with its variation and
thus it helps in taking corrective measures.
Measure of dispersion is also used to compare
uniformity of different data like income, temperature,
rainfall, weight, height, etc.

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5.1 Properties of a Good Measure of Dispersion

Like a good measure of central tendency the good
measure of dispersion should also have similar
characteristics.
h
t i ti
A good measure of dispersion should be clearly defined
so that there should not be any scope of subjectivity in
computation as well as its interpretation.

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It should be easy to compute, understand and interpret

and further, all individual observations should be used in
it estimation
its
ti ti and
d also
l it should
h ld be
b free
f
f
from
any biasness
bi
or biasness due to any extreme value.

Paper:
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Lesson:
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Since dispersion is also used to estimate many statistical

complex properties of data so a dispersion should be easily
applicable in any algebraic operations.
Finally,
Fi
ll such
h measure off dispersion
di
i
should
h ld be
b least
l t
affected by sampling or have high degree of sampling
stability.
6.1 Measuring Dispersion

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Measure of dispersion is always a real number. If all

values of individual observations are identical with central
tendenc then dispersion is always
tendency
al a s zero
ero and as deviation
de iation
in observation from central tendency increases, dispersion
also increases but it never become negative.

Paper:
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Lesson:
II

Further a measure of dispersion is absolute or relative.

In the case of absolute measure of dispersion the unit of
individual observations and the unit of dispersion remains
th same. This
the
Thi dispersion
di
i is
i useful
f l in
i comparing
i different
diff
t
data set in same unit and with same average size.
In relative dispersion unit of original observation
becomes irrelevant since it is a ratio of absolute dispersion
to some central tendency.
tendency It is useful in comparison of
data series in different units or with different size of data.
Some common measures off dispersion
S
di
i
are: Range,
R
Quartile Deviation, Mean Deviation, Standard Deviation
and Lorenz Curve.

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Lesson:
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6.1.1.1 Range
Range is the quickest and simplest measure of
dispersion.
Being a positional measure it accounts only the
difference between the highest and the lowest observation
i any data
in
d
series
i and
d does
d
not take
k into
i
account all
ll
individual observations and so it is quickest but at the
same time a rough
g or crude measure of dispersion.
p
Range always has the same unit as original observations
have
have.

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Symbolically for ungrouped data it is represented by:

R=HL
Wh
Where,
R = Range
R
H = Highest value in the observation
L = Lowest value in the observation
In the case of a grouped data range is estimated by
taking the difference of upper limit of highest class
interval and lower limit of lowest class interval.
Also in such case the difference of midvalues
mid values of highest
and lowest class interval are used as range.

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Lesson:
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In case of open ended grouped data, the width of

adjacent class is used,
used i.e.
i e it is assumed that highest/lowest
class has same width as that of adjacent class, to estimate
upper/lower limit of highest/ lowest class.

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Above method is equally applicable with grouped data

having
g equal
q
or unequal
q
class intervals.
To make it free from unit, coefficient of range is
sometimes calculated.
calculated
Coefficient of Range = (H L)/ (H+L)
Where, H = Highest value in the observation
L = Lowest value in the observation

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6.1.1.2 Merits and Demerits of Range

It is simplest and easiest to compute, understand and
interpret.

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It is a crude measure since it does not take into account

all individual observation. Addition/removal of a single
extreme value at upper/lower end of data series can alter
the range to great extent.

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In the case of open ended grouped class true estimation

of range becomes impossible.
Sampling may affect it adversely and its value may vary
markedly from sample to sample.

Paper:
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Lesson:
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Since it does not take into account of any observation

between the highest and the lowest value and so it tells
nothing about actual distribution of data between these
two extremes.

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It gives nearly good result only if sample size is

sufficiently large and data are fairly continuous or regular.
In grouped data it rarely happens that data distribution
actually touches upper/lower class limit of highest/lowest
class interval. So range calculated using these values is
usually not accurate. Range if calculated using midvalues
off highest
hi h t and
d lowest
l
t class
l
t to
try
t resolve
l this
thi problem
bl
t
to
some extent but only if data are fairly and sufficiently
distributed in these two classes.

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Geography
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Paper:
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Lesson:
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The value of range changes with the transformation of

scale.
scale For example between Rs.1
Rs 1 and Rs.10
Rs 10 the difference is
9 only but if we take paisa as unit this difference will
become 900.

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6.1.2.1 Quartile Deviation

Quartile deviation is another positional and absolute
measure of data dispersion in any series which try to
minimise the error of range as a measure of dispersion.
dispersion
Unlike range it avoids the use of extreme values and in
it place
its
l
uses the
th difference
diff
off first
fi t and
d third
thi d quartile
til as a
measure of dispersion.

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Lesson:
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It is also called semiinterquartile range or semiquartile

range or interquartile range.
range
Thus, this measure of dispersion ignores fifty per cent
(fi t 25 per centt and
(first
d last
l t 25 per cent)
t) off observations.
b
ti
Symbolically it is estimated using following formula,
Quartile Deviation (QD) = (Q3 Q1)/2

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Where, Q3 = third quartile

Q1 = first quartile
Thus quartile deviation gives the average amount by
which two quartiles differ from the median (Gupta, 2004).

Paper:
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Lesson:
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Further in any symmetrical or nonskewed or normal

data distribution median (Q2) plus/minus QD exactly
covers 50 per cent of the data distribution on either side of
the median since in such case Q3 Q2 = Q2 Q1 or
conversely
l Q2 + QD = Q3 and
d Q2 QD = Q1.
In reality, rarely a business, economic or social data are
perfectly symmetrical. So quartile deviation as a measure
of dispersion should be preferably used only where data
distribution are moderately skewed.
skewed
A lower/higher value of quartile deviation in less skewed
d t reflects
data
fl t that
th t more/less
/l
di t ib ti
distributions
are around
d the
th
median value.

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A relative counterpart of quartile deviation is called

coefficient of quartile deviation and it is represented by
following formula,

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C ffi i t off QD = (Q3 Q1)/ (Q3 + Q1)

Coefficient
6.1.2.2 Merits and Demerits of Quartile Deviation
Quartile deviation considers only middle 50 per cent of
observations and so it is not affected by extreme values as
in the case of range.
It also,
l
lik range, nott considers
like
id
all
ll observations
b
ti
i
in
estimating dispersion and so its result may be misleading.

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Lesson:
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Since it not considers extreme values and so it is useful

in estimating dispersion in grouped data with open ended
class.
Sampling
S
li may adversely
d
l affect
ff t its
it estimation
ti ti like
lik in
i the
th
case of range.
Quartile deviation as a measure of dispersion is most
reliable only with symmetrical data series. Unfortunately,
in social sciences most of data distributions are generally
asymmetrical in nature. So, its use in social sciences is
usually limited to data which are moderately skewed.

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6.1.3.1 Mean Deviation

A proper approach to the measurement of dispersion or
variability would require that all the values in a series are
t k into
taken
i t consideration.
id ti
O off the
One
th methods
th d off doing
d i it
is through average deviation or mean deviation.
As the very name indicates, this measure is an average or
the mean of the deviations of the values from a fixed
point which is usually the arithmetic mean and
point,
sometimes the median (Bhat and Mahmood, 1993).
Theoretically
Th
ti ll there
th
i an advantage
is
d
t
i taking
in
t ki
th
the
deviations from median because the sum of deviations of
items from median is minimum when sign are ignored.

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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 (Gupta, 2004).

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Mean deviations are computed first by summing the

absolute differences of each observation from mean and
then dividing it by number of observations. The sign of
deviations are ignored i.e. only absolute values are used,
since sum of deviations from mean is always zero (Hooda,
(Hooda
2002; Levin and Fox, 2006).
By contrast
B
t t the
th sum off absolute
b l t deviations
d i ti
t d to
tends
t
become larger as the variability of a distribution increases
(Levin and Fox, 2006).

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Lesson:
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Following mathematical formula is used to estimate

mean deviation of a data series,
series
Case I: Ungrouped data series

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Mean Deviation (MD) =

Where,

= sum of absolute deviations from mean

= total number of observations
Case II: Grouped data series
Mean Deviation (MD) =
Wh
Where,

= frequency
f
off observations
b
i
= midvalue of each class
Other symbols have same meaning as in the case I.

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Lesson:
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6.1.3.2 Merits and Demerits of Mean Deviation

Mean deviation is an absolute measure of dispersion but
unlike range or quartile deviation it is a calculative
measure off dispersion
di
i which
hi h gives
i
it some advantages
d
t
over
them.
It took into account all values of observations in
estimating dispersion and truly tries to give scatter in data.

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In most of cases mean deviation measures dispersion

from mean. Mean is not only easy to compute but also easy
t understand
to
d t d and
d even those
th
who
h are nott specialised
i li d in
i
statistics can understand it and a dispersion based on it is
also appealing to them.

Paper:
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Lesson:
II

Mean deviation is an absolute measure of dispersion so a

comparison against data series represented in different
unit is difficult.
Also a change
Al
h
i unit
in
it or scale
l off measurementt changes
h
the value of dispersion.
As mean is least affected by sampling so use of mean in
measuring dispersion also retains this property. But if
median is used then it holds good or nearly good as long
as data series are symmetrical or moderately skewed.
Since identification
Si
id tifi ti off mode
d is
i nott possible
ibl with
ith all
ll data
d t
series so it cannot be used frequently in measuring mean
deviation.

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Mean always has a tendency of upward biasness and also

accurate mean identification in open ended grouped data
is not possible. This problem also percolates in mean
deviation where deviation is measured using mean.

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In estimating mean deviation we take into account only

absolute value (only magnitude and not sign) of deviation
from central tendency. It is mathematically a unsound
practice and so it limits its further algebraic use.

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6.1.4.1 Standard Deviation

This method
Thi
th d off measuring
i
di
dispersion
i
i mostt widely
is
id l
acclaimed by statisticians since it nearly have all
properties of a good measure of dispersion.

Paper:
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Lesson:
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This method is not based on absolute value of deviation

of individual data from the mean so it is algebraically
tenable.
This problem
Thi
bl
i standard
in
t d d deviation
d i ti has
h been
b
overcome
by squaring the individual deviation from mean.
These squared individual deviations are summed up,
then averaged and finally its square root has been
identified as a measure of standard deviation.
deviation
This is why it is also known as root mean square
d i ti
deviation.

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Mathematically following formula

concept of standard deviation,
deviation

represents

the

Case I: Ungrouped data series

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S2 =

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Where, S2 = variance;

= standard deviation

= sum off square off deviations

d i ti
f
from
mean
= total number of observations

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Lesson:
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Case II: Grouped data series

S2 =

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Where
Where,

S2

= variance;

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= standard deviation

= frequency of observations
= midvalue of each class

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6.1.4.2 Merits and Demerits of Standard Deviation

Its most important beauty is that it is free from the
compulsion of taking only absolute value in estimating
mean deviation. So it is frequently applicable in different
algebraic
l b i operations.
ti
It took into account all individual observations and so
any slight variation in any observations automatically got
representation in standard deviation.

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Through variance it easily reflects the aberration in data

series.
It is the basis of relative measure of dispersion
coefficient of variation (CV).

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Lesson:
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It is also an absolute measure of dispersion and so

comparisons of data series in different units of
measurement are not tenable.
It value
Its
l changes
h
if unit
it off measurementt changed.
h
d
In a normal distribution, data are symmetrically
distributed around mean(mean, median or mode all
become identical) and mean covers 68.27 per cent of
observations; mean
2 covers 95.45
95 45 per cent of
observations and mean 3 covers 99.73 per cent of
observations. This property is useful in dividing a data
series
i into
i t suitable
it bl groups or class.
l

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6.1.5.1 Lorenz Curve

Lorenz curve is a graphical way of showing dispersion in
any data distribution.

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It was developed by Max O. Lorenz in 1905 as a

representative of distribution in wealth.
It is a useful measure to show the distribution of any
phenomena and it is frequently used to show distribution
of wealth, assets, biodiversity, land holdings, etc.
It assumes that
th t in
i the
th case off equall distribution
di t ib ti n
per
cent should have n per cent share in the total.

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It is graphically constructed using cumulative

frequencies of parameter and its distribution,
distribution one along
yaxis and other along xaxis, respectively, which together
add up individually to 100 per cent.

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The line making an angle of 45 from horizontal shows

the case of equal
q
distribution.
As any curved line moves away from this line of equal
distribution the inequality in distribution of that
phenomena tends to increase.
Graphically
G
hi ll this
thi conceptt has
h been
b
explained
l i d in
i the
th nextt
slide.

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Paper:
Source:http://www.rrh.org.au/publishedarticles/article457_1.gi

A shows the area of deviation from equal distribution and B is the

actual distribution of any Phenomena. Thus A and B always add up to give
the line of equal distribution.

V(a)
(QM&CR)

Lesson:
II

6.1.5.2 Merits and Demerits of Lorenz Curve

Lorenz Curve is a graphic way of representing
distribution and so it makes the complex data in visual
format which is easy to grasp by any one.
one

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P
Program:
P.G.

Lorenz Curve can be used to calculate Gini Coefficient

an another
h measure off inequality.
i
li
It is g
graphical
p
wayy of representation
p
and so have no
algebraic utility.
Note: Out of all discussed measures, first two are
positional measure of dispersion while next two are
calculative measure of dispersion and the last one is a
graphic way of estimating dispersion.

Subject:
j
Geography
Class:
Previous

Paper:
V(a)
(QM&CR)

Lesson:
II

7.1SuitabilityofaDispersionMeasure
Which measure in a particular case should be used
depends upon the nature of data series, our purpose and
off course quality
lit off good
d measure off dispersion.
di
i
For normal data distribution almost all gives good result
but it is standard deviation which is useful in many
estimations of higher order.

Directorate
of
Distance
Education
(DDE)

P
Program:
P.G.

Subject:
j
Geography
Class:
Previous

Where gap in data exist due care is required in the use of

positional measure or better it should be avoided.

Paper:
V(a)
(QM&CR)

Lesson:
II

Similarly in the case of open ended data mean deviation

can be avoided.
avoided
If our purpose is to inform public at large the selected
should
h ld be
b simple
i l like
lik range, mean deviation,
d i ti
etc.
t
Thusthereisnoconcretehardandfastrulebywhichit
canbesaidthatthismeasureofdispersionshouldbeused
inthiscase;italldependsuponthepurposeandnatureof
data
data.

Directorate
of
Distance
Education
(DDE)

P
Program:
P.G.

Subject:
j
Geography
Class:
Previous

Paper:
V(a)
(QM&CR)

Lesson:
II

8.1Summary
Central tendency gives a representative value to complex
data series by which a series not only become easily
understandable
d t d bl but
b t also
l become
b
comparable
bl with
ith other
th
series. But a central tendency is how much reliable
representative it depends upon the variation in data
distribution. Different measures of dispersion explains the
variability in data series and thus only in association with
it a central tendency become true representative of a data
series. But a suitable method of measuring dispersion
depends itself upon the data distribution and the purpose.
S it should
So
h ld be
b used
d carefully
f ll to
t avoid
id any misleading
i l di
interpretation of data series.

Directorate
of
Distance
Education
(DDE)

P
Program:
P.G.

Subject:
j
Geography
Class:
Previous

Paper:
V(a)
(QM&CR)

Lesson:
II