About This Chapter
Measures of Dispersion in Business - Chapter Summary
This self-paced business chapter is designed to help you better understand measures of dispersion. As you work through this series of short, engaging and informative lessons, you'll become familiar with topics like range, standard deviation, variance, z-scores and dispersion. The chapter also shows you how these measures of dispersion can be applied in business contexts. You can access this chapter at any time using your computer or mobile device. We've also included short self-assessment quizzes to help you practice applying these mathematical concepts. Completing this chapter will help you:
- Discuss several measures of variability
- Assess different approaches for calculating variance
- Calculate standard deviation
- Differentiate between normal and continuous distributions in business
- Explain normal distributions and mean shifts
- Define Chebyshev's inequality
- Find z-scores and estimate areas under the normal curve
- Use the empirical rule to estimate population percentages
- Calculate measures of dispersion using Excel
1. Measures of Variability: Range, Variance & Standard Deviation
Looking specifically at range, variance, and standard deviation, this lesson explores the relationship between these measures and samples, populations, and what it says about your data.
2. Calculating Variance for Business: Approaches & Examples
In statistics, variance is a calculation that measures the variability, or dispersion, of individual points within a dataset. Variance calculations provide a simple but effective analysis tool in many areas of business and finance.
3. Calculating the Standard Deviation
In this lesson, we will examine the meaning and process of calculating the standard deviation of a data set. Standard deviation can help to determine if the data set is a normal distribution.
4. Continuous & Normal Distributions in Business: Uses & Examples
When an organization seeks to analyze data for the purpose of taking action, the data must meet certain criteria. This lesson explores one of these criteria called a normal distribution.
5. Normal Distribution & Shifts in the Mean
In this video lesson, you will see what a normal distribution looks like and you will learn about the mean of a normal distribution. You will also see what happens when the mean is shifted.
6. Chebyshev's Inequality: Definition, Formula & Examples
Chebyshev's inequality is used to measure the dispersion of data for any distribution. In this lesson, we look at the formula for Chebyshev's inequality and provide examples of its use.
7. Finding Z-Scores: Definition & Examples
Talking about multiples of standard deviations can get exhausting and confusing. Luckily, z-scores allow us to talk about how far a point is removed from a mean in terms of how many standard deviations away it is.
8. Estimating Areas Under the Normal Curve Using Z-Scores
So now that we have a Z-score, what is it used for? Sure, it can make your life easier when describing standard deviations, but finding the area under the normal curve is where the Z-score shines.
9. Estimating Population Percentages from Normal Distributions: The Empirical Rule & Examples
If you've been working with z-scores for long, you probably get tired of checking those tables every time you need to check the area under the curve. Luckily, the empirical rule helps us memorize the most important values.
10. Using Excel to Calculate Measures of Dispersion for Business
In this lesson you will learn a practical application for measures of dispersion in business. We will use Microsoft Excel to calculate values for a data set of investment returns.
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Other chapters within the Business 212: Business Statistics course
- Introduction to Business Statistics
- Introduction to Categorical Data
- Descriptive Statistics: Measurement
- Descriptive Statistics: Representation
- Measures of Association & Correlation in Business
- Probability for Business Statistics
- Probability Distributions for Business Statistics
- Sampling Methods for Statistics
- Confidence Intervals
- Hypothesis Testing in Business
- Analysis of Variance
- Nonparametric Methods in Statistics
- Regression Analysis
- Understanding Business Forecasting
- Using Control Charts in Business