Question

What are measures of variability? In your opinion, why are they so important in the field of statistics?

Answer 1

Measures of variability :

1) Range

2) Variance

3) Standard deviation

4) Coefficient of variation

5) Interquartile Range

These are some measures of variability .

Importance of measures variability in the field of statistics:

1) Many powerful analytical tools in statistics such as correlation analysis, the testing of hypothesis, analysis of variance , the statistical quality control , regression analysis are based on measures of variability.

2) It is used as statistical cross reference that measures the spread of the data. Importance of statistics is to measure spread of the data and measures variability plays key role in it.

3) Measure of variability point out as how far as average is representative of the mass. When dispersion is small the average is closely represents the individual value.

4) In statistical quality control variability is used to determine nature and cause of variation in order to control variation itself.

5) All statistical distribution and their properties are based on variability.

6) For comparing two data set having same mean only measures of variability help us to find best data set.

7) In many fields variability occurs very frequently to make prediction and make decision use of measures of variability helpful.

8) For time series data , for future predications values measures of variation is useful.