Measures of dispersion, Applied Statistics

Measures of Dispersion

Box 3: Food vs. Oil


Below are the figures for foodgrain procurement   and crude oil production during 20x1-x2


 

Month

Foodgrain Procurement 
('000 tonnes)

Crude Oil Production
(lakh tonnes)


20x1

April

3,506

23.5

 

May

3,558

23.2

 

June

285

22.3

 

July

65

23.0

 

August

25

22.9

 

September

782

22.1

 

October

2,473

22.6

 

November

1,920

21.8

 

December

2,403

22.6

20x2

January

2,300

22.6

 

February

1,603

20.1

 

March

837

22.4


 

Total

19,757

269.1


The variability of the crude oil figures is much less than those of the foodgrain figures. This can be seen from the fact that all the crude oil production figures lie within 11% of the mean value of 22.4 lakh tonnes (i.e. between 19.9 lakh tonnes and 24.9 lakh tonnes). On the other hand only one foodgrain figure, i.e. February 20x2 procurement lies within 11% of the mean procurement value of 1646.4 thousand tonnes (between 1465.3 lakh tonnes and 1827.5 lakh tonnes). Hence the mean is a more representative value for the crude oil data as compared with the foodgrain data.

In the case of foodgrain procurement, the monthly figures vary from a low of 25 thousand tonnes in August 20x1 to a high of 3558 thousand tonnes in May 20x1. This is due to the seasonal nature of agriculture.

In the case of crude oil production, the monthly figures vary from a low of 20.1 lakh tonnes in February 20x2 to a high of 23.5 lakh tonnes in April 20x1.

The above vignette reveals that while a mean may give the central tendency of data, it does not reveal anything about the variability or dispersion of the data. For this another measure is needed.

The variability or dispersion of data is given by measures of dispersion.

When there is no dispersion, all the data points have identical values and the values of all the measures of central tendency converge.

Posted Date: 9/14/2012 2:46:35 AM | Location : United States







Related Discussions:- Measures of dispersion, Assignment Help, Ask Question on Measures of dispersion, Get Answer, Expert's Help, Measures of dispersion Discussions

Write discussion on Measures of dispersion
Your posts are moderated
Related Questions
The Harmonic Mean is based on the reciprocals of numbers averaged. It is defined as the reciprocal of the arithmetic mean of the reciprocal of the given individual observations. Th

b. A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y

what is the use of applied statistic in our daily routin life

Chi Square Test as a Distributional Goodness of Fit In day-to-day decision making managers often come across situations wherein they are in a state of dilemma about the applica


Simple Random Sampling In Simple Random Sampling each possible sample has an equal chance of being selected. Further, each item in the entire population also has an equal chan

get a questionnaire that captured age at first marriage

The decision maker ranks lotteries according to the utility function (i) State the independence assumption. Does this decision maker satisfy it? (ii) Is this decision ma

The Elementary Teachers' Federation of Ontario make the following claim on their website as of February 13, 2013: For years, the Elementary Teachers' Federation of Ontario (ETFO

Complete the multiple regression model using Y and your combined X variables.  State the equation.  Next, make sure that you evaluate overall model performance with the Anova table