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What are the objectives of measures of dispersion?

Asked by Siddharth Sehga...(student) , on 7/10/12

EXPERT ANSWER

Objectives of Dispersion:

Some of the major objectives of dispersion are discussed below:

1. Control of Variability: One of the important objective of measures of dispersion is to control the variability existing in the data. With control in variability, the quality of the data is enhanced. For example, in order to study the distribution of income and wealth, the measures of dispersion are used by the government of the country.

2. Comparison of two or more Series: With the help of measures of dispersion, it becomes easier to compare the variability existing between two or more series. This facilitates the information regarding the consistency present in the two or more sets of data.

3. Reliability of Measure of Central Tendency: Measures of dispersion helps in deciding the extent to which the measures of average are reliable in describing the nature of the data. If the dispersion is large in the data, then the average is a good representative of the data and vice-versa.

4. Helpful in the Use of Further Statistical Analysis: Another important use of measures of dispersion is that it facilitates the use of other statistical measures such as regression, correlation etc. All these statistical measures are based on the measures of variation.

Posted by Teena Wadhwa(MeritNation Expert)on 8/10/12

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