Some important questions with answers on measures of dispersion are given, which are drafted by expert commerce teachers from the latest version of CBSE (NCERT) books.

Important Questions – Measures of Dispersion

Question 1

Define dispersion.

Answer: 

Dispersion is the measure of the extent to which different items tend to dispense away from the central tendency.

Question 2

What is the coefficient of dispersion?

Answer: 

The coefficient of dispersion shows different data percentages or relative values. It is known as a relative measure of dispersion.

Question 3

Define range.

Answer:

Range is the variance between the lowest and the highest values in a series. 

Range = Highest value in the series – Lowest value in the series

Question 4

Explain the interquartile range.

Answer:

The difference between the first quartile (Q1) and the third quartile (Q3) of a series is known as the interquartile range.

Question 5

What is the quartile deviation?

Answer:

The half of the interquartile range is quartile deviation. It can also be mentioned as a semi-interquartile range.

Question 6

What is the formula for calculating the coefficient of quartile deviation?

Answer: 

For calculating the coefficient of quartile deviation, the following formula is applied:

Q3 − Q1/Q3 + Q1

Question 7

Define mean deviation.

Answer: 

The average of the deviations of all the principles taken from some average value (mean, median, mode) of the series by ignoring the signs (+ or -) of the deviation is known as the mean deviation.

Question 8

What is standard deviation?

Answer: 

It is the square root of the arithmetic mean of the squared deviations of the items from their mean value.

Question 9

What is a Lorenz curve?

Answer: 

A Lorenz curve is a curve that shows the actual distribution deviation (of income or wealth) from the line exhibiting equal distribution.

Question 10

Define variance.

Answer: 

Variance is another measure of dispersion. It is the square of the standard deviation.

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