Date post: | 03-Jan-2016 |
Category: |
Documents |
Upload: | travis-benton |
View: | 35 times |
Download: | 1 times |
Training Course on Basic Statistics for Research
August 24-28, 2009
STATISTICAL RESEARCH AND TRAINING CENTERJ and S Building, 104 Kalayaan Avenue, Diliman, Quezon City
Measures of Variation
Prepared by:Josefina V. AlmedaProfessor and College SecretarySchool of StatisticsUniversity of the Philippines, DilimanAugust 2009
2
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
Learning Objectives
After the session, participants should be able to:
Gain skills in the computation of the different quantitative measures of dispersion;
Describe and compare groups and individuals within groups using the measures of dispersion;
Interpret results obtained from each measure
3
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
Measures of Dispersion indicate the extent to which individual items in a
series are scattered about an average.
1. Measures of Absolute Dispersion
Use to compare two or more data sets with the
same means and the same units of measurement.
2. Measures of Relative Dispersion
Used to compare two or more data sets with
different means and different units of
measurement.
4
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
Measures of VariationMeasures of Variation
Coefficient of Variation
Range
Variation
Variance Standard Deviation
PopulationVariance
Sample
Variance
PopulationStandardDeviation
Sample
Standard
Deviation
5
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
Measures of Absolute Dispersion:
Range and Standard Deviation
Range highest observation – lowest observation
Standard deviation is the positive square root of the variance and
measures on the average the dispersion of each
observation from the mean.
6
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
• Difference Between Largest & Smallest Observations:
Range = X Largest - X Smallest
• Simple to compute and easy to understand
• Quick measure of spread
• Ignores How Data Are Distributed
RangeRange
7
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
Range = 12 - 7 = 5
7 8 9 10 11 12
7 8 9 10 11 12
Range = 12 - 7 = 5
RangeRange
What is the range of the monthly salary of people working in Y company?
3050, 3273, 3552, 4009, 5118, 6370, 8950, 10835
R = 10835 – 3050 = 7785
Q:
8
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
Important measure of variation Shows variation about the mean
• Sample variance:
• Population variance: 2
2 1
N
ii
X
N
2
2 1
1
n
ii
X XS
n
Variance
9
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
Standard Deviation
Most important measure of variation Shows variation about the mean Has the same units as the original data It is always positive
• Sample standard deviation:
• Population standard deviation:
2
1
1
n
ii
X XS
n
2
1
N
ii
X
N
10
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
1
2
n
XX i
For the Sample : use n - 1 in the denominator.
Data: 10 12 14 15 17 18 18 24
s =
n = 8 Mean =16
18
1624161816171615161416121610 2222222
)()()()()()()(
= 4.2426
S =
:X i
Calculating the Sample SDCalculating the Sample SD
11
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
1
2
n
XX is =
= 4.2426
N
X i
2 = 3.9686
Value for the Standard Deviation is larger for data considered as a Sample.
Data : Xj 10 12 14 15 17 18 18 24
N= 8 Mean =16
Sample vs Pop’n SDSample vs Pop’n SD
12
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
Remarks:1. If there is a large amount of variation in the data set, then on the average, the data values will be far from the mean. Hence, the standard deviation will be large.
2. If there is only a small amount of variation in the data set, then on the average, the data values will be close to the mean. Hence, the standard deviation will be small.
Standard Deviation
13
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
Comparing Standard Deviations
Mean = 15.5 s = 3.338 11 12 13 14 15 16 17 18 19 20 21
11 12 13 14 15 16 17 18 19 20 21
Data B
Data A
Mean = 15.5 s = .9258
11 12 13 14 15 16 17 18 19 20 21
Mean = 15.5 s = 4.57
Data C
14
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
Comparing Standard Deviations
Example: Team A - Heights of five marathon players in inches
65 “ 65 “ 65 “ 65 “ 65 “
Mean = 65 s = 0
15
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
Comparing Standard Deviations
Example: Team B - Heights of five marathon players in inches
62 “ 67 “ 66 “ 70 “ 60 “
Mean = 65” s = 3.6”
16
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
Standard Deviation
11. It is the most widely used measure of dispersion. It is based on all the items and is rigidly defined.
2. It is of great significance for testing the reliability of measures calculated from samples, the difference between such measures, and in comparing the extent of fluctuation in two or more samples.
Advantages
17
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
Standard Deviation
D
1. The standard deviation is sensitive to the presence of extreme values.
2. It is not easy to calculate by hand.
Disadvantages
18
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
Measure of relative dispersion
are unitless and are used to compare the
scatter of one distribution with the scatter of
another distribution.
Coefficient of Variation
utilizes two measures and these are the mean and
the standard deviation.
is a percentage
19
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
The formula of the coefficient of variation is given as,
population CV = %100x
where is the population standard deviation is the population mean
sample CV = %100x
sx
where s is the sample standard deviation x is the sample mean
20
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
ComparingComparing CV’sCV’s
• Stock A: Average Price last year = P50
Standard Deviation = P5• Stock B: Average Price last year = P100
Standard Deviation = P5
100%
X
SCV
Coefficient of Variation:
Stock A: CV = 10%
Stock B: CV = 5%
21
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
Example: To illustrate, you want to buy a stock and you have the option to select one out of the two. The given information is that Stock 1 is priced at P2000 per share and stock 2 is priced at P550 per share. In buying stocks, we lessen the risk by selecting a stock that has less variable price. On the other hand, if we want to take a chance that the price of the stock will go up, then we would want the stock that has more varied price. Let’s say a sample of price of Stock 1 and Stock 2 was collected at the close of trading for the past months and the following statistics were obtained: Stock Mean Price Standard Deviation 1 P1975 P578 2 P 565 P 85
22
Statistical Research and Training Center Training Course on Basic Statistics for ResearchAugust 24 - 28, 2009
To determine which of the two stocks have a more variable price, we compute for the coefficient of variation.
CVstock1 = 229 x1001975
578. % CVstock2 = 100x
565
85 15.04%
Stock 1 price is more variable than stock 2 price. As a matter of fact, stock 1 price is almost twice as variable as stock 2 price.
Training Course on Basic Statistics for Research
August 24-28, 2009
STATISTICAL RESEARCH AND TRAINING CENTERJ and S Building, 104 Kalayaan Avenue, Diliman, Quezon City
Thank you.