Measures of Dispersion

Question

Why should we measure dispersion about some particular value?

Answer

We should measure dispersion about some particular value because in that case (i) We can assess how precise is the central tendency as the representative value of all the observations in the series. Greater value of dispersion implies lesser representativeness of the central tendency and vice versa.

(ii) We can precisely asses how scattered are the actual observation from their representative value.

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