BCom 1st Year Dispersion And Skewness Long Notes :-
Q. 1 Discuse objects and importance of dispersion. What are the characteristics for a satisfactory measure of dispersion ?
What do you mean by dispersion? How is it measured? Distingulsh clearly between dispersion and skewness.
Ans. Dispersion: Dispersion literally means scatteredness. It is the spread or scatter of values from a measure of central tendency. It is studied to have an idea of the homogeneity or heterogeneity of the frequency distribution.
Objects and Importance of Dispersion
Measures of dispersion are computed to serve the following objectives :
1. To judge the Reliability of the Average : by measure of dispersion, we can judge the reliability if dispersion in a series is small it means average represents the distribution in a proper way. On the other hand, If dispersion is large, we say that average is not representing the distribution in a proper way.
2. To Know the Range of values: Calculation of dispersion is necessary to know the difference between the highest and the lowest values.