Form 4 · Chapter 8

Interpreting Measures of Dispersion

Compute range, interquartile range, variance and standard deviation for ungrouped data, and predict the effect of adding or multiplying each value.

Four measures of spread

Dispersion tells how spread out data are. The range is largest $-$ smallest. The interquartile range is $Q_3-Q_1$, the spread of the middle half. The variance $\sigma^2$ measures average squared distance from the mean, and its square root is the standard deviation $\sigma$.

Key formula

Variance $\sigma^2=\dfrac{\sum x^2}{n}-\bar{x}^2$, standard deviation $\sigma=\sqrt{\dfrac{\sum x^2}{n}-\bar{x}^2}$, interquartile range $=Q_3-Q_1$.

Effect of changing data

If every value has a constant $k$ added, the mean rises by $k$ but the range, IQR, variance and standard deviation are unchanged (spread stays the same). If every value is multiplied by $k$, the range, IQR and standard deviation are multiplied by $|k|$, while the variance is multiplied by $k^2$.

Worked example

Data: $2, 4, 4, 6, 9$. Mean $\bar{x}=\dfrac{25}{5}=5$. $\sum x^2=4+16+16+36+81=153$. Variance $=\dfrac{153}{5}-5^2=30.6-25=5.6$. Standard deviation $=\sqrt{5.6}\approx 2.37$. Range $=9-2=7$. If each value $+3$: new mean $8$, variance still $5.6$. If each $\times 2$: standard deviation $=2\times 2.37=4.73$.

Remember

  • Adding $k$: mean shifts, spread unchanged.
  • Multiplying by $k$: SD and range $\times|k|$, variance $\times k^2$.
  • Standard deviation is the square root of the variance.

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