In: Economics
Measures of location and measures of dispersion are two different ways of describing quantative variables measures of location known as average and measures of dispersion known as variation or spread.
measures of location
it describes the central tendency of the data l, they include the mean, median and mode.
Under measures of location, median findout middle value of the given data, in mode it helps to findout the highest frequency of data and in mean it findout an simple average
Advantages of measures of location:-
Averages shows us the cebtral vaule of the data, one of the simplest method to find out the central tendency.
Disadvantages:-
* will not help to findout spread of data
* May not draw accurate conclusion.
Example:- finding averages sale of vegetable in veegetable shop, finding height of of boys and girls in between 13-18 years of age
Measures of dispersion
It indicates scattering of data it explain the changes of data from anaother.
Characteristic:-
* It should be easy to calculate
* Definitely it is based on all observation of the series
* Rigid friendly
* It will not affect by extreme values
Adavntages:- gives better idea of range in an average has calculated.
Disadvantages:-
* It only shows maximum and minimum value of data.
Example :- salary of doctors in govt hospital in between 50000- 100000