Important Questions: Measures of Dispersion | Economics for Grade 11 PDF Download

Q1: What is a Lorenz curve?
Ans: A Lorenz curve is a graphical representation of income or wealth distribution within a population. It compares the actual cumulative income or wealth earned by a specific percentage of the population to the cumulative income or wealth that would be earned in a perfectly equal society. The Lorenz curve helps visualize income inequality within a population.

Q2: Define mean deviation.
Ans: Mean deviation is the average of the absolute differences between each data point and the mean, median, or mode of the dataset. It measures the average deviation of data values from their central tendency, providing a sense of the overall variability in the dataset.

Q3: Define range.
Ans: Range is the simplest measure of dispersion and represents the difference between the highest and lowest values in a dataset. Mathematically, it is calculated as follows: Range = Highest value in the series – Lowest value in the series.

Q4: What is the formula for calculating the coefficient of quartile deviation?
Ans: For calculating the coefficient of quartile deviation, the following formula is applied: Coefficient of Quartile Deviation = (Q3 - Q1) / (Q3 + Q1).

Q5: Define dispersion.
Ans: Dispersion refers to the extent of spread or scatter of a set of data points around their central tendency. It measures the degree to which individual values deviate from the mean, median, or mode of the dataset, indicating the variability or diversity within the data.

Q6: What is the quartile deviation?
Ans: The quartile deviation is half of the interquartile range and represents the spread of the middle 50% of the data. It is also referred to as the semi-interquartile range and provides a measure of variability that is less influenced by extreme values.

Q7: What is the coefficient of dispersion?
Ans: The coefficient of dispersion is a relative measure that expresses the dispersion of data as a percentage or ratio. It compares the spread of data in relation to a measure of central tendency, providing insights into the relative variability of different datasets.

Q8: What is standard deviation?
Ans: Standard deviation is a measure of the amount of variation or dispersion in a set of values. It quantifies the extent to which data points in a dataset differ from the mean value. It is calculated as the square root of the arithmetic mean of the squared differences between each data point and the mean of the dataset.

Q9: Explain the interquartile range.
Ans: The interquartile range (IQR) is a measure of statistical dispersion, representing the difference between the third quartile (Q3) and the first quartile (Q1) in a dataset. It provides a more robust measure of variability by focusing on the middle 50% of the data, excluding outliers or extreme values.

Q10: Define variance.
Ans: Variance is a statistical measure that quantifies the spread or dispersion of a set of data points. It is calculated as the average of the squared differences between each data point and the mean of the dataset. Variance is a key component in calculating the standard deviation, which provides a more interpretable measure of the dataset's variability.